Research On The Influence Of Political Connection Of Resource-Based Enterprises On Investment Efficiency Under The Effect Of Corporate Tax Avoidance

Resource-based enterprises as a component of the macroeconomy,plays an important role in the development of society.However,in the context of the increasing shortage of global resource supply,especially in 2022,when the Russia-Ukraine conflict will lead to soaring energy prices,the development mode of "high emission,high pollution and high energy consumption" has become the shackles for the survival and development of resource-based enterprises.Investment,as a major way of resource allocation,often has an important impact on the development of enterprises.Therefore,it is of great significance to help resource-based enterprises improve their investment efficiency.At the present stage,the Chinese government still has the right to allocate a lot of resources and influences the activities of enterprises in various ways.Therefore,as a system to measure the relationship between the government and enterprises,political connection will have a certain impact on the investment activities of enterprises.In addition,tax avoidance often leads to information asymmetry and agency problems,resulting in ineffective investment.However,at the same time,such behavior is also affected by political connection to some extent.Therefore,this paper will analyze the relationship between political connection,tax avoidance and investment efficiency of resource-based enterprises,with a view to providing guidance for resource-based enterprises to improve investment efficiency.First of all,this paper takes resource-based enterprises listed in Shanghai and Shenzhen as the research object and starts with the research background,purpose and significance to sort out and evaluate domestic and foreign literatures related to political connection,corporate tax avoidance and investment efficiency.Secondly,the concepts of resource-based enterprises,political connection,corporate tax avoidance and investment efficiency are defined,resource dependence theory and the theory of information asymmetry,principal-agent theory,rent-seeking theory,and effective tax planning theory are introduced to lay a theoretical foundation for the research of this paper.Thirdly,the paper theoretically analyzes the influence of political connection on the investment efficiency of resource-based enterprises and the mediating role of corporate tax avoidance in the influence of political connection on the investment efficiency,and puts forward the research hypothesis.Then,using the data of 284 resource-based A-share companies in Shanghai and Shenzhen from 2012 to 2021 as research samples,the empirical model is built with under-investment and over-investment as explained variables,political connection as explanatory variables,and corporate tax avoidance as intermediary variables.Descriptive analysis,correlation analysis,multiple regression analysis and robustness test were carried out for the samples.The empirical results show that:(1)Political connection can significantly inhibit the over-investment and under-investment of resource-based enterprises and improve the investment efficiency.(2)The role of ownership political connection in inhibiting under-investment of resource-based enterprises is more significant,while the role of representative committee political connection in inhibiting overinvestment of resource-based enterprises is more significant.(3)In the over-investment group,there is a significant negative correlation between the political connection of resource-based enterprises and corporate tax avoidance,while there is no significant correlation between the under-investment group.(4)Corporate tax avoidance has mediating effect on the influence of political connection on the over-investment of resource-based enterprises.After further distinguishing the types of political connection,it is found that corporate tax avoidance has mediating effect on the influence of representative committee political connection on the over-investment of resource-based enterprises.(5)Corporate tax avoidance has no mediating effect on the influence of political connection on underinvestment of resource-based enterprises.Finally,based on the empirical results,this paper puts forward some suggestions to improve the investment efficiency of resource-based enterprises.From the level of political connection: Rational use of political connection to play a positive role;Standardize and optimize the political connection types of enterprises;Face up to the political correlation effect and improve their own construction.From the enterprise tax avoidance level: Improve tax planning and strengthen tax avoidance supervision;Raise cash flow levels to reduce aggressive tax avoidance;Improve tax and fee reductions and strengthen tax administration.