Research On Relationship Of Political Connections, Industrial Competition And Environmental Investment Of Private Companies

The air pollution issue recently has gained more focus from the public. However, the state of environmental investment cannot be assumed positive. In such a circumstance, it is necessary to emphasize companies' responsibility to invest in environment, and study what affects corporate environmental investment. More environmental regulation laws have been issued in recent years, which proves that government has put environmental investment to a very important position. The regulation not only regulates the companies, but also the local government who has duty to scrutinize the local area.This essay stated the papers about corporate environmental investment, political connection, and based on externality theory, resource-based theory and rent-seeking theory, made a sample of private companies on A stock market in China from year 2010 to 2013. This paper examines different political connections, competition to private companies' environmental investment. The result shows that representatives-committee member connection has positive effect on environmental investment, while the official connection does not. Competition will make environmental investment more sensitive to political connection. This paper enriches the study about private companies' political connections and corporate environmental investment.