Industrial Policy,market Competition And Corporate Investment Efficiency

Industrial policy and market competition are the two main external factors affecting the investment activities of enterprises.The industrial policy is the important tool that the country carries out macroscopical adjusting control,to compensate for the failures of market regulation mechanisms,to achieve resource allocation and to regulate the industrial structure,which is widely used in various countries.Market competition is an important feature of the market economy.Market competition can alleviate the information asymmetry in the capital market,and enhance the manager’s and external Information users’ information level.Since the investment activities of enterprises are related to the long-term development of enterprises and the prosperity of the national economy.Therefore,it is of great importance to study the relation of industry policy,market competition and investment efficiency.Since the reform and opening up,the Chinese economy has developed rapidly,and the GDP has increased,but Chinese listed enterprises still face problems such as inefficient use of resources and insufficient efficiency in resource allocation.Under these circumstances,it is particularly important for industrial policy to support the development of these enterprises in a targeted and effective manner.By combing the existing research results,we found that the current research on the factors affecting investment efficiency mainly focuses on the internal factors of enterprises,and there is less research on the external environmental factors.This document is based on industrial policy,examines the mechanism by which industrial policy influences investment efficiency,introduces market competition as an adjustment variable and,considering the two external environmental factors of industrial policy and market competition,examines in depth the mechanism of external influence on investment efficiency.In addition to the external factors,the paper also selects the ownership type and runs a group regression to examine the performance of relevant influence mechanisms under different ownership types,selects various intra-firm influence factors as control variables,analyzes investment efficiency from multiple perspectives,and examines Effectiveness of Industrial Policy Investment and Market Competition in Industrial Policy.The study examines the mechanisms of influence on efficiency in depth.In this paper,Chinese listed enterprises from 2012 to 2020 are selected as the initial sample and the data were reasonably screened to obtain the final research sample;The DEABCC model is used for the calculation of firms’ investment efficiency,And the result of the calculation includes the total investment efficiency,Efficiency of Pure Technology Investment and Scale Investment,total investment efficiency = pure technical investment efficiency × scale investment efficiency.Analysis of the sample data by means of a multivariate regression analysis resulted in the following conclusions,the overall investment efficiency of firms that received industrial policy support was lower than that of firms that did not receive it,and further analysis showed that industrial policy mainly influenced the efficiency of pure technology investment,and have no obvious effect on scale investment efficiency.When market competition is included in the impact mechanism of industry policy and investment efficiency,it is demonstrated that it can reduce the negative effect of industry policy on investment efficiency.In further analysis,when the sample was split into two types of samples according to the nature of ownership of enterprises,state-owned enterprises and non-state-owned enterprises,regression analysis was conducted and the results were compared to find that specific investment efficiency of non-SOEs is more strongly influenced by industrial policy measures than SOEs.