The Empirical Study On The Effect Of Political Background On Corporate Value Based On Different Levels Of Corporate Governance

Accompanied by the retracting of Chinese economy in a highly competitive market, politically connected top management is getting more and more attention from stakeholders since this kind of top management has have abundant social connections and capital, trying to obtain and utilize more resources and contending advantages in a fast changing environment. Although studies focused on the political connections of top management are conducted by western researchers, as well as more and more Chinese scholars, there isn't any final opinion concerning whether the political connection of top management can affect firm value or what kind of effect can they exert.This paper has empirically studied the influence of top management's political connections on firm value on different levels of corporate governance. Firstly, this paper's research background, purpose and significance are introduced, as well as research status on this topic at home and abroad. Secondly, related theories, including the definitions of concerned concepts, the judgment of corporate governance levels and the theoretical foundation of political connections' influence over firm value, have been analyzed. Then the design of empirical study is explored, with the contents of data resource and collection, methods of empirical study, study hypotheses, and study model. Next, variables of corporate governance assessment are selected, their factors have been analyzed, and the levels of corporate governance have been categorized. Finally, the influence of different kinds of political connections on firm value based on various corporate governance levels has been empirically studied, and this paper's study deficiency has been pointed out and proper suggestions have been advanced.