Research Of Political Connection On The Effects Of The Credit Financing Of Private Enterprises

With the Background and relationship of social structure transformation in our country，political connection of the private enterprise is widespread，and the private business activities，financial situation，the enterprise value，and many other aspects has had a profound effect。Numerous studies have shown that political connection can make private enterprises to obtain all kinds of resources，especially the scarce and monopoly resources，such as government orders，tax incentives and industry access permission，etc。Relative to the state-owned enterprises，financing constraints of private enterprises is bigger。Whether the presence of political connection also helps ease the financing constraints，especially the credit financing constraints？What Political connection has impact on the credit financing of private enterprises？Research to these questions will help to understand the financing behavior and financing structure in the practice of transformation。Based on domestic and international political connection， credit financing literatures，using the method of theoretical analysis and empirical analysis，we make an analysis on the relationship between political connection of private enterprises and the credit financing from the scale，duration and cost。Theoretical analysis includes analysis of the system of China’s private enterprises background and putting forward research hypothesis in this paper。Empirical analysis selected the data of three years from2010to2012which is the private enterprises listed on the Shanghai exchange as the research sample，and carried on the descriptive statistical analysis、Person correlation analysis and multiple regression analysis to the sample。The results show that：(1) Political connection firms is easy to get more bank loans；（2）Political connection is conducive not only to the expansion of bank loans，but also to the extension of loan maturities；(3) The political connection of private listed companies associated with the credit financing cost，namely political connection of private listing companies，whose financing cost is relatively lower than no political connection companies，financing is also more convenient。The main innovation of this paper lies in that，(1) it systematically studied the relationship between political connection and the credit financing of private enterprises。 Existing research at home and abroad only proves political connection in private enterprises is widespread and has the convenience。Specific performance of the financing convenience is not comprehensive and systematic。In this paper，we do all-round，multi-angle research of the political connection influence on the credit financing of private enterprises from three aspects of the loan scale，loan term，loan cost，which is to further enrich and perfect the existing research。（2）Expand the research perspective of private enterprises credit financing costs。Existing literature of private enterprises credit financing cost is relatively small and few studies are limited to analytical description，studies of private enterprise financing costs from the perspective of political connection is few。In the study，this paper mainly studies political connection on the effects of credit financing costs of private enterprises，to a certain extent，which is made up for the shortcomings of existing studies。...