Government Integrity,Industrial Policy And Innovative Investment

Integrity is the pillar of the government's credibility and an important resource of national governance.In recent years,China emphasizes the construction of the credit system while emphasizing the construction of the legal system.Following the state council's guidance on accelerating the construction of social integrity,premier Li Keqiang reiterated in the government work report in 2017 that "the government should take the lead in talking about integrity".China's first government integrity report is issued in 2018.This report aims to further promote government integrity to play a benchmarking role in the construction of social integrity system.Innovation should be carried out in the positive construction of the social network of mutual trust and the active participation of all subjects in the society and other innovative cultures.As an informal system,integrity is likely to play an important role in corporate governance decisions,especially in innovative investment decisions.In current,technological innovation is increasingly important,credit system construction has attracted much attention.Under these background,discussing government credit,industrial policy and the internal relation between innovative investment performance has the important practical significance.In this paper,I choose the listed companies in Shanghai and Shenzhen A-share in our country main board in 2011-2015 as research samples,using the questionnaire data about government integrity from China securities regulatory commission,I structures the provincial level government integrity index to empirically test the inner link between government integrity,industrial policy and innovative investment performance.I find that government integrity helps enterprises to form relatively stable government policy expectations,reduce the uncertainty from external policy environment,promote enterprise's response and execution to industrial policy,encourage enterprises to increase research and development costs,at the same time,improve enterprise strategic innovation and substantial innovation.To non-state-owned enterprises and high-tech enterprises supported by industrial policies,further research shows that the impact of government integrity on enterprise innovation input and substantial innovation output is more significant.These results show that the government integrity plays an important role in the industrial policy effect of innovation-driven innovation,and plays an important role in corporate governance decisions,especially in innovative investment decisions.The research contributes to enriching the existing literatures about government honesty culture,informal institution and enterprise innovation,understanding the function of government integrity as an informal system deeply in macro industrial policy implementation and the micro enterprise behavior decision,especially in innovation investment decisions,providing the experience reference for relevant government departments to play a better innovation-oriented industrial policy incentive effects and enterprise to improve the level of material innovation.At the same time,this research also has certain reference value to further enhance the government credibility,improve and optimize the investment environment,promote the reform and speed up the transformation government function,increase the efficiency of the government and boost the social credit system construction.