The Empirical Research About Political Connections, Diversified Level And Corporate Performance Of Real Estate Listed Companies In China

On the background of reform of economy and the social structure of relationship-oriented in China, the relationship between government and enterprises is the major problem that we must pay close attention to, and we need to focus on the mode and efficiency of them from the microcosmic angle. Based on the relationship between political connections and corporate diversification, this article takes the real estate listed companies as research sample, and studies:(1) the relationship between political connections and diversified level;(2) the effects of diversification on corporate performance;(3) the effects of political connections on diversification and corporate performance.The article uses dumb variables to measure political connections, and selects the Herfindahl index as a measure of corporate diversification, selects Tobin’s Q、 ROE、DR、RRG as a measure of performance indicators. The article studies political connections, diversification and corporate performance from three dimensions--the different year, the overall sample and the segmentation sample, the market indicators and financial indicators.From the aspects of government and enterprises, this paper put forward three suggestions:(1) the government should strengthen the supervision and perfect market competition system, provide a modest reduction in government regulation;(2) the real estate enterprises should choose the route of a single product or moderate diversification to further development;(3) the real estate companies should establish a "moderate, healthy, efficient" political connections.The logical of the article is as follows:the1st chapter describes the background, the meaning purpose of the study, and research methods, and so on. The2nd chapter introduces a definition of political connections and diversification, the motivation, positive and negative effects and related research findings of scholars. The3rd chapter mainly focuses on research hypothesis, research model and so on. The4th chapter introduces the results of research, including descriptive statistics results and empirical findings. The5th chapter gives the conclusions and recommendations. The innovations and weakness:In the past, scholars tend to select listed companies or private listed companies as a sample for the study. In this article, we focus on listed real estate companies. And few similar researches are found in this field. Besides, this article evaluates corporate performance from a more overall viewpoint which makes up for the simple use of market data or financial data.Besides, the article may have a few of shortcomings, such as small sample size, no suitable control variables to measure the objective environmental indicators and so on.