The Influence Of Gender Difference And Political Connection On Enterprise Over-investment

With the 40th anniversary of reform and opening up,no matter from the scale of development and speed,market share or tax contribution,private enterprises are important organizational carriers to promote China's economic development,industrial structure upgrading and social progress.Unswervingly promoting the development of private enterprises is also China's consistent policy policy.The 19th Communist Party of China National Congress directly propose"supporting the development of private enterprises","inspiring and protecting entrepreneurship",and "building a friendly and clean political relationship." Nowadays,with the international environment getting tense,as well as the downward pressure on the domestic economy,the private enterprises are facing more opportunities and challenges.To realize the transformation of private enterprises from high-speed development to high-quality,we must pay attention to the problem of over-investment which is common in private enterprises.Over-investment has not only led to the inefficient operation of enterprises,but also seriously interfered with the resource allocation of capital markets.Upper Echelons Theory holds that managers' strategic decisions are influenced by personal cognition,and executive characteristics can reflect their cognitive situations to some extent.At present,domestic and foreign academic research on the characteristics of population,such as age and tenure,is relatively mature,while the gender concern for executives is relatively less,not to speak of the research on corporate investment behavior under the dual effects of gender differences and political connections.Therefore,this paper attempts to use the A-share private listed companies from 2008 to 2017 as a sample to explore the influence of the gender differences and political connections on the over-investment of enterprises.On the one hand,it responds to the policy call,on the other hand,it also enriches the research in related fields.Firstly,through the study of related theories such as Upper Echelons Theory,Overconfidence Theory and Free Cash Flow Hypothesis,and sorting out relevant literature research at home and abroad,this paper puts forward three research hypotheses.Then,by using Richardson's Expected Investment model,a reasonable estimate of over-investment is made.Finally,with reference to relevant research methods of relevant domestic scholars,empirical conclusions are drawn by constructing a logit model of gender differences,political connections and over-investment.The conclusions of the study indicate that:(1)In private enterprises,the probability of over-investment of male executives is significantly higher than that of females;(2)when sub-samples are based on whether the executive have the political connection,the paper found a significant proportion over-investment of male executives in politically-related groups,which means that political connection exacerbate the gender differences in o'ver-investment.At the same time,the higher the intensity of political association,the greater the probability of over-investment;(3)by introducing gender and cashflow or liability interactions,the paper found that in the political connection group,male and female executives have no difference in the use of cash flow,but male managers with political connections can indirectly promote the over-investment by strengthening the use of liabilities.