An Empirical Study On The Relationship Between Anti-Corruption And Enterprise Innovation

Economic effect of corruption has been controversial in academia,the opposite side of this controversy is the arguing between the pros and cons of anti-corruption.Since the 18th National Congress of the Communist Party of China,the institutionalization of anti-corruption has also been further emphasized,this provides an opportunity to study the economic impact of anti-corruption.Anti-corruption not only has a profound impact on the macroeconomic,but also on which the impact of micro-individual cannot be ignored.In this paper,difference in difference method is applied to study the merits and demerits of anti-corruption,which starts from the perspective of corporate innovation.Through theoretical analysis,this paper holds that the political connection of enterprises is an important way for anti-corruption to influence enterprise innovation.Under the current situation of economic transformation,local governments have great power to allocate resources,as a result,enterprises are forced to or take the initiative to establish political connections.Corrupt officials reach out the so called“grabbing hand”to enterprises through this connection.The“grabbing hand”squeezes the investment in innovation,which has a typical nature of high risk,under the enterprise's internal resources constraints.By cutting off the"grabbing hand",anti-corruption improves the level of enterprise innovation.This article uses more than 1,000 A-share listed companies to conduct research.Statistical results show that,the enhancement in arguing does exists and it has different manifestations in different enterprises nature and region.This paper provides support for anti-corruption theory through empirical analysis,and provides empirical evidence for "institutionalization" of anti-corruption.