Empirical Research On The Impact Of The Support Of China’s Industrial Policy On The Herd Behavior Of Company Investment

With the advent of the “13th Five-Year Plan” and the “14th Five-Year Plan”,China’s economic development situation has undergone a giant change in the past decade,and the overcapacity of overcapacity remains is basically solved.In order to implement the structural reform of the supply side,continue to solve the contradiction between the people of my country’s growing material culture and the backward social production,and realize the economic output from“quantity” to “quality” with the “14th Five-Year Plan”.The main industrial policy has a vital role in my country’s future economic development and industrial structure transformation and optimization upgrades.Therefore,reflecting the goal of industrial policies,the implementation process of industrial policies,the implementation of the implementation effect of industrial policies,which is conducive to the improvement of industrial policy framework and policy measures during the “14th Five-Year Plan”,so that the economic benefits of industrial policies maximize.Although China’s current industrial policy has evolved,it is still based on selective policy intervention,and the resource is some specific industrial flows are directly or indirectly guided.Although selective industrial policies can initially replace the “market failure” problem arising from the imperfect market economy,it is also facing “government failure” issues in theory,which triggered the mismatch of resources,on the microeconomic activity level.Investment non-efficiency issues that have been supported by industrial policies,such as low investment levels and low investment efficiency,and some industrial capacity has long existence.As a way of expressing non-efficiency in company investment,the herding behavior will deteriorate the industry’s management performance,and even have a negative impact on the company’s value.In the relevant research of industrial policies,the company’s investment sheep group behavior as a factor that may lead to overcapacity,and whether it is affected by industrial policies.Clarifying the relationship between industrial policies and company investment in the behavior of the company,helping policy makers reflect on the lack of industrial policies in my country,and adjust the future policy framework.From the “selective” characteristics of China’s industrial policy,this paper analyzes whether industrial policies will affect the company’s investment sheep.In this paper,in 2011-2019,the Shanghai-Shenzhen A-share listed company is sample,and the impact of China’s industrial policy support for the companies’ investment sheep group is empirically analyzed based on the tendency score match.At the same time,combined with the companies’ government subsidy level,cash flow level and management confident level,analyzes the impact of factors including political associations,financing constraints and corporate governance on the relationship between the support of industrial policy and corporate investment herding behavior.According to the results of this paper,it has been found that:(1)China’s industrial policy has increased the companies’ investment herding behavior;(2)The more government subsidies received,and when it is supported by industry policy,the more serious the company’s investment herding behavior;(3)The higher the companies’ cash flow level,the more serious the company’s investment herding behavior;(4)The higher the companies’ management’s confidence level,when it is supported by the industrial policy,the companies’ investment herding behavior will be attenuated.On the basis of the above research conclusions,this paper proposes corresponding policy recommendations to mitigate the co-population behavior of the companies’ investment.For example: policy function positioning from the government’s “replacement” of market to enhance market function,make up for market defects;policy methods should be mainly induced by indirect means induced by administrative direct intervention,using indirect means induced by law,using practical,functional industrial policies,create a good market environment for industrial development;improve the full process of building industrial policies.