TITLE:
Local Officials’ Change and Corporate Investment—Evidence from Listed Companies in Strategic Emerging Industries
AUTHORS:
Jiang Zhu
KEYWORDS:
Local Officials’ Change, Corporate Investment, Strategic Emerging Industries
JOURNAL NAME:
Open Journal of Business and Management,
Vol.5 No.2,
April
25,
2017
ABSTRACT: Based on the sample of listed companies in strategic emerging industries between 2007 and 2014 of China Shanghai and Shenzhen Stock Market, this paper tested the effect of the change of the local prefecture level city mayor and party secretary on corporate investment, and further studies differentiated different enterprise types. The results indicated that the change of prefecture level city party secretary will lead to the significant increase of strategic emerging industries listed companies investment and this effect occurs only in the second year; we have not found significant effect of the change of the local prefecture level city mayor. Further, this paper limited examples. We found that the investment of state-owned enterprises were influenced significantly by the change of prefecture level city party secretary and this effect lagged one phase, major’s turnover had no significant effect. Higher market degree companies and higher government subsidies companies showed similar results. The result of his paper has enriched the study of the relationship between local officials’ change and corporate investment.