| Since1978,China ushered in the spring breeze of reform,and China economy willcontinue to rise and development.The private economy is doing well in China’s nineteenmajor industries in three main industries,and has made great contribution to China’s GDPgrowth. Each year,the National Association of Industry and Commerce will select the top500of the private economy on the base of the total operating income. In2012,the top500of theprivate economy contributions433478millions yuan to finance,accounting for4.31%of thenational tax revenue;and contributions6757thousands jobs,accounting for0.88%of thenational employment.For the financial tsunami in2008China’s economic development hadsuffered heavy losses,and the survival and development of many enterprises was threatenedand the unemployment population rised. Thanks in large part to the private economy changingthe mode of economic development under the guidance of reform and innovation, oureconomy can get rid of the crisis as soon as possible and ultimately go forward. Facingvarious natural disasters in2010, many private enterprises were responsible to loosen theirpurse strings generously,made a great contribution to the charity,and showed a strong senseof social responsibility.To make a long story short,the position of the private economy inChina’s economic arena can’t be overlooked and conveying their strength for the rejuvenationof the Chinese Everfount,by fully cooperating with leading state-owned economy.In view of the good performance of the private economy,business circles and academiccircles are also gradually keen to study the economic performance of private enterprises.Howto improve the enterprises’ economic performance? Many entrepreneurs and scholars hasstudyed it from the perspective of political behavior and the political strategy of enterprises.By using appropriate political behavior and political strategy,enterprises can maintaincompetitive advantage, remain invincible in the fierce market competition,and continue tosurvive and develop. Due to historical reasons,in long-term state-owned enterprises have beenthe object of government protection, and have some advantages and resources far beyondprivate enterprises’ reach.In contrast,the survival of private enterprises is more fragile and itsrelationship with the government is likely to affect its survival.If the enterprises make proper political strategy,and have good political association,they can reduce economic losses causedby information asymmetry,reduce the barriers when the enterprise enter certain industry, getfinancial subsidies more likely,and make their property rights protected.It is essential for theenterprises.Therefore,in-depth discussion and research on the relationship between politicalconnection of private enterprises and enterprises’ performance is very necessary.This paper,by the theoretical analysis,summarizes the definition of political associationsand measuring methods and the effect of the establishment of political association of privateenterprises,and analyses the relationship between political connection of private enterprisesand enterprises’ performance;and by using the empirical research method,according to themothed that the National Association of Industry and Commerce named the top500privateenterprises, with the sample of the top150private enterpriseand in China in2012with totalrevenues for screening standards,using descriptive statistics in the statisticalanalysis,correlation analysis and regression analysis and other statistical method to build amodel,this paper demonstrates the hypothesis.And finally this paper draws the conclusion:ifprivate enterprises have formed political connections,that it can benefit enterprises andpromote enterprises’ value,improve the performance of enterprise,make the enterprises gainmore profits.In the new economic situation, this paper points to clear direction for privateenterprises about how to make proper political strategy and political behavior and makesreference to the development of private enterprises. |
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