The Relationship Between Top Management Team’s Political Connection、Women Participations And Company Performance

The connection between the enterprise and the government is the focus of academic debate, and the study of which is becoming more and more, everyone has his or her own opinion. Some think that the company’s top management team of the government background or NPC, CPPCC background can accumulate connections for the company, which will give enterprises advantages in getting preferential tax and financing incentives. Political background can also deliver a positive and reliable signal, reduce the uncertainty of market and improve the efficiency of transactions. It is also good for the company to get key information and timely grasp policy tendency, all these mentioned above are conducive to the improvement of corporate performance. While others believe that political connection is the product of government intervene to the market (Fan et al.,2007), such interventions may "intervene" the company’s operating management in many ways, the manager’s goal deviates from the shareholder value maximization (Du Xingqiang,2009), seeking political relation is also a kind of rent-seeking behavior, and this kind of phenomenon is abound giving the fact that the law are inadequate in our country, it can bring the ascension of short-term interests for the company, but not good for the advancement of company performance (Du Xingqiang,2012). In recent years, the phenomenon of political association of small and medium-sized enterprise are becoming more common, this article discusses the effect of political connection on small and medium-sized board listed company performance in the back ground of economic transformation and the coexistence of the formal system with informal system.Women have be defined as "wife" in our traditional culture, this kind of social role expectations and the traditional culture concept makes women often encounter "glass ceiling" in the workplace. Comparing with men, the paths of women into the top management team have more twists and turns, they tend to be having more attention even criticism (Judge,2003). Even if women and men get the same results, women’s evaluations are relatively low, male leaders will question the validity of the women’s leadership (Ryan,2007). With the rapid development of our economy and the continuous improvement of women’s status, women are much more and more in politics or top management team, and a lot of women entrepreneurs has achieved good results. Female has the characteristics of practical upward, positive enterprising, exquisite and sensitive trait, they are considerate and sensitive to others’emotions, they have better communication skills than men and better able to coordinate various relations (Dong Xiaoze,2008). In terms of leadership style, women are good at using transformation leadership, compared with men, women use more democratic management, they encourage subordinates to actively participate in work, realize self-value, and devote themselves into groups, considering all these advantages, whether company can bring the ascension of the performance? This article verifies with relevant data it based on the small and medium-sized board listed company.Small and medium-sized enterprises play an important role in the development of national economy in our country, Small and medium-sized boards of listed companies are typical representatives of the small and medium-sized enterprises. These companies are generally mainly private enterprises because of their unique backgrounds, small enterprises tend to have more severe phenomenon of family control, and they have stronger motivation to take advantage of a variety of relationships and resources to improve corporate performance,(ZhongYanping,2010). Compared with large state-owned enterprises, small and medium-sized board listed companies are relatively small, their ability of protecting against risk is weak, they mainly rely on the company’s core technology or a new product, their rapid development calls for great capital supply, so their motive of using political relation for tax benefits and financing facilitations is much stronger. The relationship of political connections, women’s participation of small and medium-sized plate of listed companies and corporate performance are rarely discussed. So the study will provide certain theoretical guidance and practical significance.This article combines normative research and empirical research, by combing and summarizing the relevant literature both at home and abroad, this article establishes the model and proposes five hypotheses. Based on the real data from 2009to2011of small and medium-sized board of listed companies, this article uses descriptive statistics analysis, correlation analysis, partial correlation analysis and multiple linear regression analysis method to test the hypotheses.The innovation and contribution of this paper are mainly manifested in the following two aspects:firstly, measurement innovation. This paper uses virtual variable method to measure the political relation and adopt proportion method to measure women executives. considering the uniqueness of the small and medium-sized board market, not all the executives announced are taken into account, the article only considers the ones who are important in decision-making and rules out the independent directors; Secondly, the research object of this article is the political connection、women’s participation of middle and small-size stock panel, which extends the existing theories about the performance of small and medium-sized board of listed companies in a broader field.This paper is arranged as follows:the first part is the introduction of research background, research purpose, research methods, research meaning and innovation points; the second part is literature review, reviewing the related literature at home and abroad and defines some important concepts. The third part is the theoretical analysis and the research hypothesis, this paper put forward five hypotheses on the basis of combing the literatures. The fourth part is the research design about the sample selection and data sources, and explains the variables in the regression equation. The fifth part is empirical analysis. The Sixth part is summary and outlook. Deriving the conclusion of this article, pointing out the shortage and the direction of further research are discussed.