The Influence Of Political Connection On The Process Of Enterprise Internationalization

In recent years,the degree of internationalization of Chinese companies has become increasingly important in the global market.However,as one of the emerging economies,China still needs to improve its institutional system."Human society" and government-led resource allocation are still objective conditions that cannot be ignored.Enterprises with political connections may not only obtain a series of advantages that are conducive to the degree of internationalization of the company,such as financial support and administrative protection from political connections,but at the same time may be restricted by the "invisible hand" and lack innovation and core competition.Power,ultimately is not conducive to the deepening of internationalization.Therefore,the influence of political connections on the degree of corporate internationalization deserves more detailed exploration and exploration.This article takes China’s A-share listed companies from 2010 to 2019 as the research object,and carefully examines the influence of political connections on the degree of corporate internationalization.Through the rich information collected,this article can carefully examine the influence of political connections on the degree of internationalization in different dimensions such as the depth and breadth of internationalization of enterprises.Research shows that the existence of political connections has a significant negative effect on the degree of internationalization of enterprises.Further mechanism exploration found that political connections do affect the degree of internationalization of enterprises by influencing enterprises’ R&D and innovation investment.In the sub-sample test that distinguishes the geographic location of enterprises,it is found that political connections in coastal areas have a negative impact on the degree of internationalization of enterprises,but political connections in inland areas have a positive impact on the degree of internationalization of enterprises,while distinguishing industry attributes The sub-sample test results found that for companies in labor-intensive industries,political connections have no significant impact on the degree of corporate internationalization,while corporate political connections have a very significant impact on the degree of corporate internationalization in capital-intensive and technology-intensive industries.Significantly.The research in this article has theoretical and practical significance.It provides a new perspective for the interpretation of the internationalization of Chinese listed companies,and at the same time provides a policy basis from micro-enterprise research for the government to improve the institutional system.