Research On The Influence Of The Perquisite Consumption Of State-owned Enterprises On Enterprise Performance Under The "Eight-point" Anti-bureaucracy And Formalism Rules

Reasonable perquisite consumption is a necessary expenditure for the company to carry out daily business activities.However,when management relies on its own position of authority to carry out excessive perquisite consumption and even become waste,perquisite consumption becomes a kind of corruption.On December 4,2012,the Political Bureau of the CPC Central Committee reviewed and passed the “eightpoint” guideline for fighting bureaucracy and formalism and rejecting extravagance among party members,anti-corruption campaigns have been vigorously carried out across the country.The “eight-point” definitely had a direct impact on the behavior of managers in state-owned enterprises.Confront the “eight-point” rules,state-owned enterprises have two measures to deal with: First,carry through the principle of the “eight-point” rules,reducing the scale of perquisite consumption;Second,without reducing(or limited reducing)the perquisite consumption level,reflect perquisite consumption in more concealed and insensitive accounting subjects instead of reflecting it in sensitive accounting items to circumvent the supervision of higher authorities,discipline inspection commissions,and the public.In this paper,we use the “eight-point” rules as an exogenous shock to build a difference-in-difference model.Test the impact of the “eight-point” rules to perquisite consumption of state-owned listed companies firstly.We further analyze the change of proportion of perquisite consumption which are treated as expenses after the “eightpoint” rules released.In the end,we explore the impact of reduction of state-owned enterprise' perquisite consumption caused by the “eight-point” rules on enterprise performance.This study provides empirical data and theoretical support for the economic consequences of anti-corruption operations in the context of the “eight-point” rules.The content of this paper is divided into five chapters.Chapter 1 is Introduction.Chapter 2 is Literature review.This chapter includes the literature review of the causes and metrics of perquisite consumption,economic consequences of perquisite consumption,classification shifting and the impact of perquisite consumption on enterprise performance.Chapter 3 is theoretical analysis and research hypotheses.Sums up the theoretical basis and puts forward the research hypothesis.Chapter 4 is research design and empirical analysis.We test the impact of the “eight-point” rules to perquisite consumption of state-owned listed companies.We further analyze the change of proportion of perquisite consumption which are treated as expenses after the “eightpoint” rules released.In the end,we explore the impact of reduction of state-owned enterprise' perquisite consumption caused by the “eight-point” rules on enterprise performance.Chapter 5 is research conclusions,policy recommendations and research limitations.Through the above theoretical analysis and empirical research,the following conclusions are drawn:1.Compared with non-state-owned enterprises,the “eight-point” rules significantly reduced the spending of perquisite consumption of state-owned enterprises.2.The proportion of state-owned enterprises' perquisite consumption which reflect in G&A expense and operating expense has dropped significantly after the “eight-point” rules released.In front of the “eight-point” rules,state-owned enterprises exist classification shifting,without reducing(or limited reducing)the perquisite consumption level,reflect perquisite consumption in more concealed and insensitive accounting subjects instead of reflecting it in sensitive accounting items to circumvent the supervision.3.After the “eight-point” rules released,the reduction of state-owned enterprise' G&A expense and operating expense does not lead to an increase in enterprise performance in the next year.That means after the implementation of the “eight-point” rules the state-owned enterprises may partially evade regulation by manipulating the accounting items of perquisite consumption.