Analysis on the Path and Mechanism of Anti-corruption Influencing Corporate Investment

Abstract

At present, China is in a period of economic transition. Due to the imperfect system and supervision mechanism, the government's control over key resources has led to corporate corruption. In this article, we study the path and mechanism of anti-corruption influencing corporate investment through combing the literature and empirical research. Anti-corruption may influence corporate investment by the cost of capital and expected cash flow. The empirical results show that the influence of anti-corruption on enterprise investment is heterogeneous in property right, region and industry. Under different levels of intervention and control, private corporations are negatively affected by the anti-corruption movement. Under high intervention and control, state-owned enterprises are positively affected by the anti-corruption movement.