Local Officials' Change,Enterprise Investment And Performance

Under the influence of the financial crisis,China's economic growth has slowed down in recent years,the private investment is weak,and most of the enterprises'operating performance is not ideal.The scholars have explored the economic factors that affect the investment and performance of the enterprise.The impact of political factors is equally important.For example,Trump has make the United States variables increased sharply,brings great political uncertainty to the global economy.In China,the government is an important characteristic of the market.When government officials change,due to different officials have different policy preferences,it will lead to political uncertainty.In recent years,local officials change frequently,and restricted its economic development.Therefore the paper doubts that whether the policy uncertainty will affect the investment behavior and performance of the enterprise.Based on this,we use the tax investigation data to make an empirical study on the influence.The first part of this paper introduces the topic background and research methods,innovation and deficiency.The second part is related researches.The third part introduces the theory of fiscal-decentralization and the Western political-economic cycle theory,analyze the adverse effects of political uncertainty on the corporate.The fourth part constructs the fixed effect model to study the problem that policy uncertainty affects firm investment and performance.The empirical results show that local officials' change reduced firm investment,but had not a significantly effect on firm's performance.On this basis,we further explored the reason why the policy uncertainty cannot affect firm performance.The last part summarizes the research conclusions,and gives some advice to deepen the reform of market economy,reduce the tax burden of enterprises.Studies have shown that local officials' change reduced firm investment,but had not a significantly effect on firm's performance.Because the enterprise taken the response.From the enterprises of different sizes,the influence of small and medium-sized enterprises is bigger than that of large enterprises.Large enterprises with greater political sensitivity,have take effective measures to deal with policy uncertainty risk.According to the empirical results,some suggestions are proposed.