Region Corruption And Corporate Financial Decisions

Corruption and anti-corruption has become the most popular social hot topic in China during the transition period,and it is highly concerned by academia.Domestic and foreign scholars from the corruption will undermine the investment environment,widening income gap,hinder economic growth and other issues of theoretical research and empirical research.However,the existing research has neglected the influence of officials' corruption on the efficiency of the operation from the micro perspective.The degree of corruption in the region has an important influence on the business decision-making of the enterprise as an important external governance environment.With the development of enterprise economy,the financial decision-making behavior is more and more attention by the senior management of the enterprise.Therefore,this paper studies the relationship between regional corruption and corporate financial decision-making.This paper examines the impact of regional officials' corruption on cash holdings,financing decisions and investment efficiency in corporate financial decision-making from the perspective of macroeconomic environment's impact on micro-business decision-making.This paper intends to select the corporate data of A shares listed in China from 2002 to 2013 as the sample,combined with the qualitative analysis and quantitative analysis,normative analysis and empirical analysis of research methods,based on the theoretical literature on the use of empirical data to test,The Impact of Corporate Financial Decision.The results show that:(1)regional corruption will affect the enterprise cash holdings and financing decisions,the specific performance of the more serious areas of corruption,corporate cash holdings lower,the higher the financial leverage ratio,more inclined to debt financing;Further research shows that,compared with state-owned enterprises,regional corruption has a greater impact on the cash holdings and financing decisions of non-state enterprises.The process of marketization is conducive to alleviating the impact of regional corruption on corporate cash holdings and financing decisions.It is further found that regional corruption has a greater impact on the cash holdings and financing decisions of non-political affiliates than political affiliates.(2)the more serious areas of corruption in the region,the lower the efficiency of investment in enterprises,the specific performance of over-investment and investment;further study found that,compared to state-owned enterprises,regional corruption on non-state-owned enterprises more effective investment;The process is conducive to alleviate the impact of regional corruption on the efficiency of business investment;further found that,compared to political affiliated enterprises,regional corruption on non-political affiliated enterprises greater impact on investment efficiency.The research of this paper enriches the research on the corrupt areas of regional officials,and also provides further empirical evidence for the role of macroeconomic environment in corporate decision-making.Through the conclusion of this paper,it not only refutes the absurdity of "anti-corruption hinders the economic growth" which exists in our country's society at present,but also provides strong experience support for the further promotion of anti-corruption action by the central government,and also reveals that our enterprises are constantly upgrading themselves Internal governance level at the same time,should also be combined with external governance environment weigh the daily business decisions.