Political Connections,Over-investment and Corporate Value:Empirical Evidence from State-owned Public Listed Companies
研究了国有上市公司政治关联对过度投资的影响，发现政治关联显著增加过度投资概率，且地方政治关联比中央政治关联影响更大，过度投资会降低企业价值。
Political connection of state-owned public listed companies is universal phenomenon in the Chinese capital market.The paper manually collects the political connections data of key managers in the state-owned public listed companies,and adopts comprehensively various measurement methods about political connections to test the relation between political connections,over-investment and corporate value.The results show that political connections significantly increase the probability of over-investment of the state-owned public listed companies, and there is a significantly positive relation between the strength of political connections and the probability of over-investment Furthermore,local political connections significantly increase the probability of over-investment of state-owned public listed companies than central political connections.The paper also discovers that over-investment behavior of state-owned public listed companies significantly decreases corporate value.