A Case Study On The Impact On Investment Of Executives' Political Promotion Motivation In A Corporate

In recent years,the governance of state-owned enterprises has been widely concerned with by the public,the incentive mechanisms of state-owned enterprise executives are increasingly becoming the focus in the academic circles.Generally speaking,theenterprise manager's incentive mechanism includes explicit incentives,in the form of compensation contracts,bonuses and dividends,as well as implicit incentives,such as reimbursements,promotion and so on.In China,the senior officials and managers of state-owned enterprises double identity,they not only need to perform given to them by the enterprises entrusted responsibility,they also pay attention to climb the political ladder have effect on them.As you can see,they have strong political demands of promotion.Therefore,SOE executives this strong political promotion incentives will have important effect on its own behavior.At present,the existing literature research mainly focused on the study of political promotion incentives for the effectiveness of corporate performance,but against the political promotion incentive is how to influence the behavior of managers research is very scarce.Based on SOE executives have strong political demands of promotion,through to the domestic and foreign relevant executive political promotion and investment behavior research in the field of two systematic review and comb,in the form of case studies to explore senior political promotion incentives affect managers investment behavior.In order to more clearly portrays the political promotion impact on investment behavior,based on A company executive politics before and after the promotion company's own investment behavior,on the basis of comparison,has chosen the industry executives did not achieve political promotion of state-owned enterprises and private listed company B and C company as A comparison,the comparison is political promotion incentives led to the differences of the enterprise.At the same time,choose the mean as a reference of the industry,a comparative analysis on their investment behavior,and by comparing the investment efficiency test its investment behavior to meet the behavior or is suppressed,then analysis the influence mechanism of investment behavior differences.Under the political promotion incentives to executives of A company's investment behavior to do A more complete analysis,to deepen the reform of the state-owned enterprises and perfect the corporate governance of our country provide realistic case.The study found that political promotion incentives lead to state executive to obtain political promotion,in the investment behavior shows excessive investment and through the analysis of investment efficiency test,A company executive in the investment behavior reduces the investment efficiency of the enterprise,damage to the enterprise value.At the same time put forward to reduce the phenomenon of three Suggestions: first,to remove the state-owned enterprise senior management personnel of the administrative functions make its identity into ordinary enterprise management role.Secondly,in order to achieve a good job of enterprise management talent reserves.Finally,set up perfect and effective reward mechanism of state-owned enterprise senior management personnel.