Study On The Influence Of Political Ties On The Efficiency Of Enterprise Capital Allocation

Review of nearly 40 years of reform and opening process,China's state owned enterprises,local state owned enterprises and the development of private enterprises have made a great progress,but the political ties problems between government and business still exist,which deserves our full attention and research.Investment is the main factor driving economic growth,and political ties has an important influence on the investment behavior of enterprises.However,existing research on the influence of political ties and enterprise capital allocation efficiency has no consistent conclusion.There is also a lack of comparative analysis on the influence mechanism and influence degree of central enterprises,private enterprises and local state owned enterprises.The establishment of the modern enterprise system,which is divided by the government and enterprise,and the development of mixed ownership economy to stimulate the endogenous vitality of state owned capital,and to maximize the benefit and efficiency of capital.Therefore,it is of a great significance to study political ties and enterprise capital allocation efficiency based on the background of a new round of economic system reform.This article first sorts out related literatures at home and abroad,initially expounds the related connotations and theories of the efficiency of political connections and corporate capital allocation,and summarizes the literature review of the influence of political linkages on the efficiency of corporate capital allocation,laying the foundation for the full text.Secondly,based on the era background of Chinese companies,the comparative analysis method and the classification research method were used to deeply analyze the influence of capital allocation efficiency of political association and different ownership enterprises.Thirdly,the investment efficiency is measured using the residual of the Richardson efficiency model,the degree of allocation of capital efficiency is measured by the investment efficiency index,the degree of corporate political correlation is measured by the valuation method,and the political association and the efficiency of capital allocation are measured and analyzed.Finally,combined with the theoretical and empirical results of this paper,we propose targeted countermeasures and suggestions that can effectively improve the relationship between government and enterprises.Through empirical analysis,this paper draws the following conclusions: The impact of political connections on corporate investment efficiency is significantly negative.Property rights restriction of different investment efficiency of listed companies for political sensitivity associated with significant differences of characteristics: relatively state owned enterprises,private enterprises by political ties the negative effect on the efficiency of corporate investment is more obvious;Compared with the central state owned enterprises,the negative impact of political ties on the investment efficiency of local state owned enterprises is more obvious.Finally,based on the theoretical and empirical results,this paper puts forward specific countermeasures and suggestions that can effectively improve the relationship between government and enterprises.