Research On Government Intervention And Excessive Investment Behavior Of State-owned Enterprises In My Country

The outbreak of the global financial crisis in 2008 has had a huge impact on all walks of life in China,and the shrinking market demand has exposed the over-investment of state-owned enterprises,which has led to extensive discussion on the excessive investment behavior of enterprises in academic theory.Many scholars had made their discussion only based on the internal factors like the self-desire and the overconfidence of the manager,but they had ignored the impact of the unique institutional background of China had on it's state-owned enterprises' investment decision-making.The over-investment tendency of state-owned enterprises is not entirely caused by the agency problem.The government will encourage state-owned enterprises to expand their investment through certain means of intervention to help the government achieve social and economic goals,such as absorbing employment and increasing taxes.In this paper,the case study method is used to follow the traditional research paradigm of "problem-finding problem-solving problem",taking Dongfang Electric Group as an example,from the perspective of government intervention,this paper will analyze the mechanism of government intervention in over-investment of Dongfang Electric,and then summerize the enterprise itself and put forward the corresponding strategies for overinvestment.The overall structure is as follows:The first part briefly describes the background and the significance of the government intervention in the enterprise investment;The second part is the theoretical exposition of the government interventional overinvestment;The third part summarizes the current situation of the over-investment of state-owned enterprises in our country;The fourth part is the practice case analysis of Dongfang Electric over-investment behavior under the government intervention;The fifth part is the revelation and coping strategies after the case analysis;The sixth part is the research conclusion of this paper and the future research direction.With the gradual deepening of our reform,the correct handling of government-enterprise relations will become a hot topic,hoping that this article can provide useful reference for the relevant departments.