Political Background Of Management,Financial Constraints And Over-investment

Since the reform and opening up,China's private enterprises have achieved obvious development results,and the main obstacles in the process of development are financing constraints.To investigate the current financing situation in China,whether in the direct or indirect market,the existing financial system provides the private economy with less financing power and financing facilities than state-owned enterprises in terms of concept,system and technology.Because of the "political basis",state-owned enterprises are more likely to obtain "intangible guarantees" from the government and facilitate financing.This has led to the dependence of the private economy on resources through the "rent-seeking" approach to local governments.Among them,establishing links with the government through the election of representatives of the National People's Congress,members of the CPPCC,or accepting the government's appointment of Guandeng has become an important way to achieve "rent-seeking".Our country is in the perfect stage of market economy system,the healthy development of economic market can not leave the dual escort of market and government.In the process of government intervention in enterprises,on the one hand,the government supports the development of the company from the aspects of industry access,tax incentives and property rights protection,and improves the efficiency of the company's investment.On the other hand,the government may also influence the company's investment decisions,resulting in excessive investment,which will have a certain damage to the value of the company.In order to find out the influence mechanism of the management political background on the over-investment of the company,based on the theory of resource dependence,government intervention theory,and rent-seeking theory,this paper uses financing constraints as intermediate variables to construct the management political background--financing constraints--over-investment model.The internal relationship between the three and its impact are analyzed.Create "pro-'' and" clear "health relations between government and enterprises;It is of great significance to transform the market economy system and solve the investment and financing problems of private enterprises.This paper is based on the definition of relevant variables,and takes all A-share citizens from 2012 to 2016 as the research object.The paper systematically combs therelevant documents of management political background,financing constraints and over-investment,puts forward the hypothesis based on the theory analysis and constructs the management political background-financing constraints-over-investment model.Research shows that:(1)The management political background of Chinese private listed companies is positively related to over-investment.(2)The financing constraints of private listed companies in China are negatively related to excessive investment.(3)The management political background of Chinese private listed companies is negatively related to the funding constraints.(4)The financing constraints of private listed companies in China play an intermediary role between the political background of management and excessive investment.In other words,private listed companies with a management political background will lead to excessive investment by reducing financing constraints.Based on the conclusion of the above empirical study,this paper promotes the transformation of government;Improve capital market construction;The four aspects of human resource management and corporate governance have put forward relevant countermeasures and suggestions to do a good job for the government.Create "pro-'' and"clear "political and enterprise relations;The company selects the senior management and builds the perfect investment and financing system construction to provide the reference suggestion.