Policy Burden and Private Enterprise Behavior: A Case Study of Sany Heavy Industry Corporation Changed Registered Address
Based on the case of Sany Heavy Industry changed registered address, this paper aims to take policy burden as a starting point to explore the impact of policy burden on private enterprise behavior. It finds that under the stimulus of fiscal decentralization system and political tournament mode, in order to achieve political goals, the governments enhance the motive for intervening local companies, and local governments intervene local private enterprises with large scale through policy burden. Compared to state owned companies, private enterprises' responses to policy burden depend on their own development scales. When the development scale of private enterprises reaches a certain degree, they tend to avoid local governments' intervention actively and seek a more fair market environment. Existing literature mainly concludes that some private enterprises establish political connections with local governments through undertaking policy burden in a positive attitude or in a passive attitude. From the perspective of case study, this paper analyzes another possible response of private enterprises to policy burden, and explains the interaction between private enterprises and local governments from the perspective of policy burden.