The Influence Of Official Turnover On Enterprise Investment Behavior

The economic development of the developed countries is different from our country,such as:developed countries from the market dominated,our country from the government dominated.The government is made up of officials.As a "rational economic man",the political goals of officials are the embodiment of officials' decision-making,which permeates into the formulation,implementation and implementation of government policies.That is to say,government actions are a reflection of government officials' decisions.From this point of view,if we study the political system only from "government" not considering "officials",which will not be able to directly explain the mechanism of the government's influence on enterprises.Therefore,this paper has certain theoretical value and practical significance to study the officials behind government actions and their impact on corporate behavior.In order to improve the level of officials' governance,the central government began to carry out exchanges between leading cadres of the Party and state organs in 1990,and limited the term of appointment of leading cadres;in 2006,it formally issued the Interim Provisions on the Term of Service of Leading Cadres of the Party and Government,further specifying the term of appointment of local officials.These policies have pointed out the direction for the development of China's cadre and personnel system,at the same time the replacement of officials became a normal state due to promotion,demotion,retirement,exchange or tenure etc..Therefore,based on the transfer of political power brought about by the turnover of officials,combined with China's unique institutional background,based on the replacement of prefecture-level municipal Party Secretaries as a starting point,this paper systematically examines the impact of official turnover on micro-enterprise investment behavior.There have been more studies on the impact of changes in policy environment brought about by official turnover on the overall investment of enterprises,while the analysis of the impact of official turnover on different investment behavior of enterprises is relatively inadequate.This kind of research has not explored the impact of official turnover on the specific investment behavior of enterprises.There are many kinds of enterprise investment behavior,which can be divided from different angles.Considering the long decision-makingtime and more complex factors of foreign investment such as mergers and acquisitions.According to the different purposes of domestic investment,this paper chooses three types of domestic investment,i.e.fixed assets investment aiming at expanding reproduction,innovative investment aiming at achieving sustained competitiveness and environmental investment aiming at sustainable development of enterprises in the future.This paper systematically examines the impact of official turnover on each specific investment of micro-enterprises,and divides the whole sample into groups according to the nature of property rights,industry attributes and regional differences to study the differences in the scale of each specific investment in enterprises of different property rights,different industry attributes and different regions facing official turnover.Then it further analyses the influence of government hierarchy and official heterogeneity(official source and abnormal replacement)on the scale of each specific investment in enterprises when officials change,and considers the sustainability of the political event of official replacement on the scale of each specific investment in enterprises.The research contents and conclusions are as follows:Firstly,the impact of official turnover on fixed assets investment in enterprises.In order to make the conclusions of empirical research close to the economic reality of the society in recent years,this paper explores the impact of official turnover on the scale of fixed assets investment in enterprises from 2008 to 2017.Research finds that official turnover will reduce the scale of fixed assets investment in enterprises;compared with state-owned enterprises,official turnover has a greater impact on the scale of fixed assets investment in private enterprises;compared with enterprises in heavy assets industry,official turnover has a greater impact on the scale of fixed assets investment in enterprises in light assets industry;compared with enterprises in the Eastern region,official turnover has a greater impact on the scale of fixed assets investment of enterprises in the middle and Western regions.Further research shows that,official origin from other places will reduce the investment scale of fixed assets of enterprises,which mainly exists in private enterprises,light assets enterprises and enterprises in the middle and Western regions;the abnormal change of officials reduces the scale of fixed assets investment of enterprises,which mainly exists in private enterprises,light assets enterprises and enterprises in the central and Western regions;the impact of official turnover on the scale of fixed assets investment of enterprises is short-term,not long-term sustainability.Secondly,the impact of official replacement on enterprise innovation investment.China's Enterprise Accounting Standards(2006)requires listed companies to implement the new accounting standards in 2007,and the implementation of accounting standards needs to adapt to the process,considering 2007 is the beginning year of the implementation of the standards.In order to ensure the uniform caliber of R&D expenditure data,this paper explores the impact of official turnover on the scale of innovation investment in enterprises from 2008 to2009.Research finds that official turnover will reduce enterprise innovation investment;compared with private enterprises,official turnover has a greater impact on innovation investment of state-owned enterprises;compared with high-tech enterprises,official turnover has a greater impact on innovation investment of non-high-tech enterprises;compared with enterprises in the eastern region,official turnover has a greater impact on enterprises in the middle and Western regions.Further research shows that officials from other places will reduce innovation investment of enterprises,which mainly exists in state-owned enterprises,non-high-tech enterprises and the central and Western regions.Officials' abnormal change will reduce the scale of enterprise innovation investment,which mainly exists in state-owned enterprises,non-high-tech enterprises and enterprises in the middle and Western regions;the impact of official turnover on enterprises' innovation investment expenditure is short-term,not long-term sustainability.Thirdly,the impact of official turnover on environmental investment in enterprises.Since the publication of "Guidelines for Environmental Information Disclosure of Listed Companies" on the Shanghai Stock Exchange in 2008,Chinese enterprises have begun to publicly disclose environmental investment data.This paper explores the impact of official turnover on the scale of environmental protection in enterprises from 2008 to 2017.Research finds that official turnover will increase enterprises' investment in environmental protection;compared with state-owned enterprises,official turnover has a greater impact on private enterprises' investment in environmental protection;compared with enterprises in heavy polluting industries,official turnover has a greater impact on enterprises in non-heavy polluting industries;compared with enterprises in eastern regions,official turnover has a greater impact on enterprises' investment in environmental protection in middle and Western regions.Enterprise environmental protection investment has a greater impact.Further research shows that official origination from other places will increase environmentalprotection investment,which mainly exists in private enterprises,enterprises in non-heavy pollution industries and enterprises in the middle and Western regions;Officials' abnormal change will increase environmental protection investment,which mainly exists in private enterprises,enterprises in non-heavy pollution industries and enterprises in the middle and Western regions.The impact of official turnover on environmental protection investment of enterprises is short-term,not long-term sustainability.Generally speaking,the change of policy and system brought about by the replacement of officials will reduce the investment in fixed assets and innovation of enterprises,but can promote the investment in environmental protection of enterprises.This conclusion shows that the influence of official turnover on each specific investment behavior varies with the purpose and attributes of the investment behavior.It makes us realize that the influence of official turnover on the investment behavior of enterprises has both inhibiting and promoting effects.It depends on the specific investment and how the enterprises respond to official turnover.The changes in policy and institutional environment provide specific investment decisions.Moreover,this study further deepens the understanding of the situation in which official turnover affects the investment behavior of enterprises,and enables us to realize that the impact of official turnover on each specific investment behavior will vary with the nature of enterprise property rights,industry attributes and the region in which the enterprise belongs.Research of this paper enriches the official replacement,fixed assets investment,enterprise innovation investment and environmental protection investment and other relevant literature and provides substantial theoretical foundation and empirical basis for follow-up study.Firstly,this paper enriches the research results of official turnover and micro-enterprise investment behavior.Compared with previous studies,this paper refines the impact of official turnover on corporate investment behavior to specific investment types,and selects fixed assets investment,innovation investment and environmental protection investment.It theoretically and empirically examines the impact of official turnover on these three types of internal investment behavior.Previous literature on the impact of official turnover on corporate investment behavior mainly focused on the overall level of investment,but did not explore in depth the impact of official turnover on specific corporate investment behavior.Therefore,by refining the investment behavior of enterprises,this paper systematically presents the relationship between the official turnover and the investment behavior of enterprises,deepens the understanding of how the official turnover affects the investment behavior of micro-enterprises,and enriches the relevant literature on the economic consequences of official turnover and the influencing factors of various investment behavior of enterprises.Secondly,this paper deepens the understanding of the situation of the influence of official turnover on the investment behavior of enterprises.Compared with previous studies,it uses more detailed sample grouping processing to analyze the adaptive situation of the impact of official turnover on enterprise investment behavior,combining with the nature of enterprise property rights,industry attributes and regional differences.Previous literature has explored the impact of official turnover on corporate investment behavior,but has not explored whether this impact will vary with the nature of corporate property rights,the industries and regions.Through detailed sample grouping,this paper confirms that the change of policy environment brought by official turnover has a certain adaptability to each specific investment behavior of enterprises,and expands the depth and breadth of the research on the influence of official turnover on investment behavior of enterprises.Thirdly,this paper confirms the short-term impact of official turnover on corporate investment behavior.Compared with previous studies,it analyses the persistence of the impact of official turnover on the specific investment behavior of enterprises.Previous literature has not explored the sustainability of this impact.This study finds that the impact of official turnover on corporate investment behavior is short-term and not long-term,which provides a way to explore the persistence of the impact of official turnover on corporate investment behavior in the future,helps to further understand the economic consequences of official turnover on corporate investment behavior,and also gives an explanation for the macro-level economic fluctuations.