Politicians' Promotion Pressure and Firm R&D

Politicians' Promotion Pressure and Firm R&D


Author:Dong Zhu,Pan Lingyun Journal:Nankai Economic Studies Date:2020(02)

Abstract Based on the data of China's A-share listed companies from 2006 to 2014 this paper analyzes the impact of politicians' promotion pressure on the company's research and develop ment. The research results show that politicians' promotion pressure has inhibited the company's R&D investment. In addition we also discussed the regulatory role of the official's job expecta tions and found that the extension of the official's job expectations can weaken the suppression effect of the promotion pressure on the company's research and development and the adjustment effect of the job expectation is more obvious in the less market-oriented regions. In the extended analysis we further examined the role of politicians' promotion pressure in suppressing the  company's research and development and found that the promotion pressure of officials will weaken the R&D investment of enterprises through short-term investment incentive   mechanism rent-seeking induction mechanism and market competition inhibition mechanism.  This paper not only analyzes the role of politicians' promotion pressures on the quality of eco nomic growth but also has important implications for improving political governance and pro moting economic transformation.  


KeywordsPoliticians' Promotion PressureFirm R&DExpected TersMarketization

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