Government Relationship,Financial Preference And Investment Efficiency—Based On The Empirical Research Of Listed Firms In China

Since 2008,China has been experiencing the profound reform both politically and economically.Under the new challenging background of government decentralization and structural changes of economy,the political strategy of listed firms has been increasingly focused among the academic world industrial world.This paper starts from the perspective of listed firms,carefully researches the impact of government relationship,governmental fiscal preference on the investment efficiency of listed firms with different ownership.Through the analysis of the data from 2008-2014,the results show that:(1)Listed companies' investment efficiency is positively correlated with the level their government relationship,which through improving the relationship with government,list companies could improve the investment efficiency.This impact turns out to be very strong in Non-SOEs but not significant in SOEs;(2)Listed companies' investment efficiency is negatively correlated with the level their government subsidies,which through obtaining more government subsidies,list companies' investment efficiency could be reduced.This impact turns out to be very strong in Non-SOEs but not significant in SOEs;(3)Listed companies' investment efficiency is positively correlated with the level their government tax deduction,which through obtaining more tax deduction,list companies could improve the investment efficiency.This impact turns out to be quite strong in Non-SOEs but not significant in SOEs;Through the study results listed above,it could be concluded that listed firms could improve their investment efficiency by employing the senior executives with government working background to enhance the government relationship.However the higher level government fiscal preference will results lower investment efficiency.Meanwhile,these impacts turn out to be quite strong in Non-SOES but not significant in SOEs.