How Does Officials'Hometown Favoritism Promote Hometown Construction?From the Perspective of Corporate Investment
Based on identity recognition and rent-seeking theory,this paper examines the influence of officials'hometown favoritism on corporate investment behavior.The research shows that:Officials'hometown favoritism promotes corporate investment but has no negative impact on investment efficiency,which indicates that officials'hometown favoritism mainly stems from identity recognition.Officials'hometown favoritism mainly affects corporate investment through increasing financing scale rather than distorting financing costs.When officials have prior expertise in central government or local promotion,officials'hometown favoritism has a more significant impact on corporate investment.The positive relationship between officials'hometown favoritism and corporate investment is mainly reflected in capital-intensive industries and enterprises with higher performing businesses.The conclusions reveal that informal institutions such as officials'hometown emotions and identity recognition are deep factors that affect the development of enterprises.It has new enlightenment for appropriately using and playing the role of informal institutions,and guiding resource allocation.
万方数据
