Empirical Research On Political Connection And Investment In The Enterprises Of The Sea Industry

The establishment of political connections between the enterprises and the government is a common phenomenon in the economic development of all countries,the imperfection of the economic system leads to the political connection as an informal system to be favored by the enterprise during the period of economic transformation in China.The state promulgated "national marine economic development of 13 th Five-Year plan " in May 2017,the development of marine industry has met a good opportunity.The marine enterprises is the carrier of the marine economy,the marine industry has such characteristics as strong publicity,high risk,strong professionalism and long capital recovery cycle,which makes the impact of political connections on investment in offshore industries different from that in general enterprises.On the basis of combing the relevant literature at home and abroad,starting with the political connection,focusing on the influence of political connection of marine industry enterprise investment and over investment,analyze the influence on enterprise investment behavior of political strength empirically.On the basis of the empirical study,this paper analyzes the advantages and disadvantages of the establishment of the political association of the enterprises of the sea industry and how to improve the investment efficiency in the future so as to promote the development of the marine industry.First,combing the previous studies,it is found that scholars have different views on the impact of political connections on enterprises,and there is no research on Marine related enterprises.On the basis of analyzing the institutional background,based on social capital theory and rent-seeking theory,this paper analyzes the internal mechanism of political connection affecting enterprise investment,and then puts forward two research hypotheses based on theoretical analysis.In this paper,we take the executives' data and the company's financial data from 2012 to 2016 in China as an example to analyze the relationship between political connections and investment scale and over investment.Finally,according to the theoretical analysis and the empirical results,the corresponding policy suggestions are given.The main conclusions of this paper are as follows:(1)The political relevance of the marine enterprises is high,and the overall trend is increasing,and the construction of political relevance can bring benefits to the marine enterprises.(2)The access threshold of marine industries is high,and the burden of the state-owned listed companies is heavy.(3)The correlation between the political relevance and the scale of investment in marine enterprises is not significant.The regression results of model 1 show that the impact of political correlation on the scale of investment in sea related enterprises is not obvious,which is different from the general private enterprises.(4)The correlation between the political relevance and overinvestment of the marine enterprises is not significant.The regression results of model 3 show that the effect of political association on overinvestment is not significant,which is different from that of the general private enterprises.Policy recommendations:(1)The marine related enterprises should strive to improve their own governance structure and mechanism,and improve the enterprise value fundamentally.(2)The government should improve the relevant system and standardize its own behavior.A feasible system should be formulated to regulate the behavior of local governments,clarify the boundary between the government and the enterprises involved in the sea,minimize the government's direct intervention in the marine related enterprises,and strengthen the decisive role of the market in the allocation of resources.(3)To accelerate the legal construction of the marine field,promote the construction of the judicial system,accelerate the legal construction of the development of the sea-related enterprises,improve the supervision of the implementation of the law and ensure the implementation of the law.The government should establish long-term marine planning,including the use of sea areas and other related industry information should be transparent;establishment of offshore investment funds,credit innovation and other means to broaden the financing channels for the marine industry;reduce barriers,encourage private capital investment in marine industry,expand the competition;Finally,in view of state-owned sea related enterprises and so on.This article provides a new perspective and provides a reference for the development of sea-related enterprises and the development of the marine economy as a whole...