An Empirical Study Of The Impact Of Corporate Governance And Political Connection On Governance Performance

Corporate governance in western developed countries is a natural historical process with the enterprise system. To establish modern enterprise system of our country is to promote the establishment of the government, not the development of the market economy, corporate governance is the transformation from the planned economy to the market mechanism is not perfect the legal system and the background of the theory of corporate governance. Western classical, research results can not completely guide Chinese corporate governance practice, there are some Chinese characteristics of corporate governance issues need further study. In China with the opening of the reform of state-owned enterprises corporate governance has been more than 20 years, the research on corporate governance scholars increasingly, formed a relatively fixed research paradigm research on corporate governance, mainly from the internal governance structure of the company, ignoring the selection and external governance factors overall company governance mode of enterprises in our country. Ring, for research on economic consequence. Corporate governance is companies involved in the dynamic process of the parties of the long-term game. The effectiveness of governance and a country’s level of economic development, is closely related to improving the degree of law and capital market development. In view of this. This paper, based on the on the macro background of economic transition period, selected 2007-2014 time study of context specific research, the use of economic, legal system, market, culture, behavior, etc. factors of situational description, description, consider a comprehensive corporate governance, political connections on the performance management effect.According to the new trend of research on the behavior of the international academic community, break the original connotation of corporate governance boundary, we propose two dimensions of governance structure and behavior, and apply it to the evaluation index system of listing Corporation governance in different ways; considering the particularity of the different nature of the property enterprise itself and access to specific political connections, to distinguish between nature and strength on political connections; expand the governance performance of the connotation of the concept of financial comprehensive quantification on it. From the Shanghai and Shenzhen two Stock Exchange listed A shares of the company selected 303 suitable listing Corporation samples, including 213 state-owned enterprises and 90 private enterprises, manual collection of corporate governance, political association and corporate performance related data of three variables. Through descriptive statistics, correlation analysis, regression model and other statistical measurement methods, comparative analysis of the governance structure, governance effect on corporate performance. Should the relationship between enterprises of different ownership political connections and governance performance, an empirical test of governance structure, governance behavior influence on the relationship between political connections and corporate performance. Through empirical research we draw the following conclusions: first, the overall situation of China’s listing Corporation governance on the table is good, and the governance index increased year by year; two corporate governance, the governance structure and behavior of the two impact path of governance performance, governance structure and governance performance of the positive effect in corporate governance of institutional investors as a "value creation" role to a certain extent, affect the governance performance significantly; three, the establishment of corporate political association did not bring positive effect completely the performance of corporate governance, and corporate crime cases, with the strengthening of national anti-corruption efforts after 2014. The effect of political connection on corporate performance. New changes should be made; four, the relationship between corporate governance and governance structure and governance behavior has a positive impact on the relationship between political and governance performance, but the role of the two in different ownership enterprises is different.Based on the macro background of the economic transition period, based on the specific situation, consider the comprehensive effect of internal and external governance, corporate governance, political connection and governance performance of the contribution of this paper is: first, to enrich the system in theory, stakeholder theory, social capital theory further based enterprises improve the system of theory, to study corporate governance, political association provides a theoretical analysis framework, expounds the corporate governance, the interaction mechanism of political association, to fill the gaps in the current study; two, expand the connotation of the concept of corporate governance, governance behavior research, we propose two dimensions of governance structure and behavior, and the listing Corporation governance evaluation system, provide a new measurement tool of company governance; three, empirical test of the governance structure, governance behavior on Governance Performance Difference; by distinguishing the nature and extent of political association, of political relations and governance performance of regression analysis, provide more clear and comprehensive empirical data for government "support" or "predatory" role in the controversy. The effects of different ownership structure of corporate governance, governance behavior on political connections and governance performance in the effect of the difference, the empirical evidence of corporate governance was given, launches the necessity of political connections and governance performance from the perspective of corporate governance.