Politics Related Effeets On Enterprise Performance In Private Listed Companies

In the background of the economic system reform in our country, the proportion of private economy was greatly improved in national economy. At the same time, because of the great development of the mode of operation, development mode, economic benefit, private economy has also attracted great attention of the society from all walks of life. Because our country’s economic model has been transformed, the improvement of the system needs to be improved. Under these factors, it appears insufficient protection of intellectual property rights, the ignorance of the private economy as well as policy discrimination, which is not surprised. In additional that, the regional economic development is out-off-balance, the government economic intervention policy has been influenced on the market, increasing the government’s influence on enterprises and intervention. So private enterprises should improve the system of enterprise, strengthen the contact, legitimacy, and government efforts to obtain a bigger government policy support as a strategic target at present stage. Political association’s influence on the enterprise economic activity has become a hot topic, which has been paid wide attention in the academic circles.Combined with the discipline theory knowledge and relevant theoretical research at domestic and abroad, based on the understanding of relevant national system framework, this article analyzes the influence of system of political relationship and the influence of political relationship of enterprise management and performance, and then provide a hypothesis about the political connection, institution background and firm performance. The article executes an empirical analysis per samples of China’s private companies’data which are listed in Shanghai Stock Exchange from year2009to year2011. On the basis of theoretical research and empirical analysis, the article comes to a conclusion as follows: firstly, the private enterprise of political connection can increase its performance. Political connection of private enterprises mainly manifest in the influence of the government’s policy support of enterprise itself brings to the enterprise economic benefits, in reality performances the improvement of corporate performance; secondly, different regions of the institutional environment has been affecting enterprise performance. Since our country economic system has been in transition, the regional economic differences is inevitable, the institutional environment is more weak, the stronger political relevance influence is on enterprise performance; Finally, political connection is the regulation mechanism imbalance of the imbalance economic market system environment. In the backward areas of institutional environment, private enterprise efficiency is generally not high. So, the private company can offset the backward negative effects system environment on the corporate performance by establish reasonable political connection.Through the study of this article analysis, we can prove that the political connection can indeed improve the economic benefits of private enterprises. Within a reasonable range of political association does provide guarantee of the enterprise performance, but the degree of political connection can not be excessive, such as bribery, collusion, trade power for enterprises which endanger social is obvious. In order to prevention the above problems, this article puts forward the following suggestions:firstly, to increase and improve the market supervision system and make the connection between the government and enterprises open, avoiding the occurrence of black-box operation, provide enterprises with a reasonable fair market, which enables enterprises focus on improving service level to improve performance; secondly, the economic market should severely hit the illegal behavior, and encourage legitimate production behavior to set up enterprise production, management, marketing and so on right directions; thirdly, to speed up the market-oriented economic system reform, further perfect the institutional environment; Finally, to establish the new type and reasonable relationship between government and enterprises which is a target.