The Empirical Evidence of the Effect on the Enterprises R&amp;D from Government Subsidies, Political Connections and Rent-Seeking

Cai, Dongliang; Zhen, Yang; Wu, Jihuai; Xu, Qiuhua

doi:10.1007/978-3-319-59280-0_40

Cited by 5 publications

(4 citation statements)

References 25 publications

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“…From the ecological evolutionary perspective, the lack of regulation will, in turn, lead to a serious waste of primary productive resources. However, excessive government intervention can breed corruption in rent-seeking [44]. Therefore, whether environmental regulation can better drive the green transformation of dairy farming subject production depends on whether the stimulus of "forced transformation" is greater than the motivation of "regulation capture", which is what we need to verify in the following part of this paper based on the mechanism of interaction between the environmental regulation and green transformation of dairy farming subject production.…”

Section: Analysis On the Interaction Mechanism Between Environmental ...mentioning

confidence: 95%

“Forced Transformation” or “Regulation Capture”—Research on the Interactive Mechanism between Environmental Regulation and Green Transformation of Dairy Farming Subject Production

Wang

et al. 2022

IJERPH

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Under the situation of an increasing resource and environment shortage, the green transformation of dairy farming subject production driven by environmental regulation is the concentrated embodiment of a “promising government” to solve the problem of breeding environmental pollution. Due to the shortcomings of environmental regulation itself and the undefined connotation of the green transformation of dairy farming subject production, the interactive relationship between the two remains unclear at present. Based on defining the concept of green transformation of dairy farming subject production, this paper aims to analyze the interactive mechanism between the environmental regulation and green transformation of dairy farming main production, build a dynamic game model between the environmental regulators and dairy farming subject, and introduce the constraints and benefits of a reputation mechanism on the behavior in the model to explore whether environmental regulation can drive the green transformation of dairy farming subject production. The results showed that the green transformation of dairy farming subject production followed the “subject substitution view” and emphasized “source reduction, process control and terminal treatment”. Strictly designed environmental regulations could effectively drive the green transformation of dairy farming subject production, but it was inevitable that the environmental regulators were vulnerable to the rent-seeking behavior of dairy farming subjects, which was “regulation capture”. The introduction of the reputation mechanism has greatly improved the rent-seeking behavior of dairy farming subjects and the probability that environmental regulators have “regulation capture”, indirectly forcing dairy farming subjects to participate in the green transformation of production. The greater the punishment for dairy farming subjects who do not participate in the green transformation of production was, the more they can be forced to participate in the green transformation of production. At the same time, it also reduces the risk of damage to the credibility of the government. Based on the studies above, this paper also further discussed the shortcomings of environmental regulation itself, including the “re exit and light implementation” of the environmental regulation policy, “decentralization and light inspection” of the environmental regulation subject, “result and light process” of the environmental regulation mode, and “formal regulation and light informal regulation” of the environmental regulation form, which provides a scientific reference for the formulation of the environmental regulation policy of livestock and poultry breeding in the future. Compared with previous studies, this paper is innovative in two aspects: first, it defines the conceptual connotation of a green transformation of dairy farming subject production, and second, it systematically discusses the interaction mechanism between the environmental regulation and green transformation of dairy farming subject production. This paper provides a scientific reference for the development of future environmental regulation policies for livestock and poultry farming.

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Section: Analysis On the Interaction Mechanism Between Environmental ...mentioning

confidence: 95%

“Forced Transformation” or “Regulation Capture”—Research on the Interactive Mechanism between Environmental Regulation and Green Transformation of Dairy Farming Subject Production

Wang

et al. 2022

IJERPH

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“…At the same time, it also imposes heavy cost shackles on firms. Specifically, establishing or maintaining political connections usually consume a lot of staffing, material resources, and funds, such as entertainment and transportation costs in the rentseeking process (Cai et al, 2018) and non-transparent charges as well (Du et al, 2009). To meet the needs of local governments to achieve GDP growth goals, firms may deviate from the primary business investment blindly to help the government achieve job growth and social stability.…”

Section: Hypothesesmentioning

confidence: 99%

SD Policy, Political Connection and R & D Expense: Firm-Level Evidence from China

Wang¹,

Jiang²

2023

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This paper aims to answer whether super deduction of R & D expense policy (SD policy), a preferential tax policy, effectively stimulates a firm's R & D in the first place and whether the policy is affected by the firm's political connections in the second. By theoretically exploring how SD policy and political connection influence a firm's R & D expense behaviour, the paper then empirically examines the effects using firm-level data in China. Results show that SD policy stimulates firms' R & D significantly, which was, however, mitigated by political connections. Besides, the types of political connections of a firm's CEO have heterogeneous effects on the SD policy-R & D expense nexus in the way that CEOs with CPC and NPC backgrounds have a promotive effect but are statistically insignificant. In contrast, CEOs with government and CPPCC backgrounds have an inhibitive effect.

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“…In areas with a better institutional environment, companies are no longer willing to pursue the relationship between government and enterprise through rent-seeking (Cai et al, 2017) H4. For enterprises located in regions where the institutional environment is poor, the negative moderating effect of political connections is more significant.…”

Section: The Difference In Institutional Environmentmentioning

confidence: 99%

Succession, political resources, and innovation investments of family businesses: Evidence from China

2021

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This paper empirically tests the impact of the succession of family businesses on corporate innovation investments and examines the two different types of political resources, political connection and state ownership, in the moderating role of the relationship between succession and enterprise innovation investments. The results show succession hinders the innovation investment of family firms, and political connection has a negative moderating effect on the relationship, while state ownership has a positive moderating effect. Further research shows that in areas with poor institutional environment, the negative adjustment effect of political connections is more significant, and in areas with better institutional environment, the positive adjustment effect of state ownership is more significant.

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The Empirical Evidence of the Effect on the Enterprises R&D from Government Subsidies, Political Connections and Rent-Seeking

Cited by 5 publications

References 25 publications

“Forced Transformation” or “Regulation Capture”—Research on the Interactive Mechanism between Environmental Regulation and Green Transformation of Dairy Farming Subject Production

“Forced Transformation” or “Regulation Capture”—Research on the Interactive Mechanism between Environmental Regulation and Green Transformation of Dairy Farming Subject Production

SD Policy, Political Connection and R & D Expense: Firm-Level Evidence from China

Succession, political resources, and innovation investments of family businesses: Evidence from China

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The Empirical Evidence of the Effect on the Enterprises R&D from Government Subsidies, Political Connections and Rent-Seeking

Cited by 5 publications

References 25 publications

“Forced Transformation” or “Regulation Capture”—Research on the Interactive Mechanism between Environmental Regulation and Green Transformation of Dairy Farming Subject Production

“Forced Transformation” or “Regulation Capture”—Research on the Interactive Mechanism between Environmental Regulation and Green Transformation of Dairy Farming Subject Production

SD Policy, Political Connection and R &amp; D Expense: Firm-Level Evidence from China

Succession, political resources, and innovation investments of family businesses: Evidence from China

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SD Policy, Political Connection and R & D Expense: Firm-Level Evidence from China