Government Intervention, Nature of Ownership and Enterprise Investment Efficiency——An Empirical Research Based on Panel Data Analysis

Abstract

In the critical stage of economic transformation and upgrading, the government has a strong incentive to intervene in the investment behaviour of enterprises under the double assessment of political and economic indicators. This paper found that government intervention has a significant impact on enterprise investment, by providing financial support and other means to promote enterprises to expand investment, but due to the lack of effective guidance, it turns into over-investment. After further distinguishing the nature of ownership between state-owned enterprises and non-state-owned enterprises, the phenomenon that government intervention affects enterprise investment is more obvious in state-owned enterprises, which is reflected in promoting over-investment and restraining under-investment. Therefore, government intervention will affect the investment efficiency of state-owned enterprises to a greater extent and make them develop in the direction of over-investment. This paper provides an overall perspective to explore the impact of government intervention on enterprise investment behaviour under the rapid economic growth.