Empirical Studies Of The Political Relations Of Private Enterprises In The Strength Of Bank Financing And Capital Structure

In recent years, the impact of political relations of enterprises for enterprise's development are concerned by more and more scholars are, what's the real relations of them two, Different scholars come to different conclusions from different perspectives.The results show that the political relations of the enterprises can not only provides convenience for financing and tax incentives and so on, in some cases it also affects the decision-making of enterprise's financial. As an important aspect of financial management, Capital structure always affected by various factors and it diff from different countries and different regions. In China, the market economy is still not perfect, in such situations lacking of supervision and management, the corporate political relations have a deeper level of meaning. This article is the political relations as company characteristic factors, to study the strength of bank financing of private enterprises and capital structure.In this article, we chose A share listed companies for study, Select all end in 2009 in Shanghai and Shenzhen A-share control of an individual sample of private enterprises, Cross-section data by year, bank financing for private enterprise model and the capital structure model two types of multiple linear regression model, in order to study China's private listed companies on corporate finance activities, political relations, and capital structure. The results showed:First, the impact of the private enterprise executive's government's background for bank financing is not intensity, but, the local government executives serving on the capital structure of the background have a significant positive impact. Secondly, the impact of the private enterprise executive's Central People's Congress background for bank financing is not intensity; it has some positive influence the capital structure. Thirdly, the impact of the private enterprise executives'local People's Congress background for bank financing is not intensity; it has no positive influence the capital structure.