Positive Analysis About Political Associations, Market-oriented And Enterprise Performance

Scholars study shows that in the context of China’s transitional economy, the realestate business exist the behavior of political rent-seeking. The reason is mainly dueto the Chinese real estate market is not high. From the beginning of the last century,Chinese Legals and regulations system is not perfect, the lack of effective propertyrights protection mechanisms such a special system context, the real estate businesswas because of lack of effective protection is difficult to survive and develop, and isessentially a political association kind of "relationship", which acts as the"relationship" a typical form for real estate business property protection, land usepriorities, loan financing, tax benefits, such as access to government procurementcontracts to provide convenient conditions. Therefore, in the process of the real estatemarket, research and political associations, market-oriented real estate business firmperformance is important.In order to study political associations, market-oriented real estate firmperformance, reasonable suggestions to the real estate business. The author of2005-2009non-financial listed real estate companies as the research sample, the applicationof the amended Shleifer model, Based on the theoretical analysis, this paper presentsthe research hypotheses constructed market, political association and corporateperformance research model,research of the real estate business performance problemby univariate and multivariate regression analysis, regression analysis, and robustnesstest, empirical results show:(1) listed real estate enterprises to establish politicalconnections to help them overcome the unfavorable market environment and theconstraints of the legal system, thus improving business performance. Specificresearch showed that: Political Connections Index and listed real estate company’sperformance is related to the greater political relevance index, the higher corporateperformance; government intervention index and the performance of listed real estatecompanies positively correlated; regional financial development level and listed realestate firm performance was positively correlated relations in the level of financialdevelopment more developed regions, the performance of listed real estate companieshigher; regional legal standards and listed real estate company’s performance is apositive correlation between the level of the legal system in those areas is not moreperfect, the performance of listed real estate companies on the higher.(2) the level ofthe legal system and political association is an alternative relationship. Specific performance: In the case of the legal system is not perfect, the more frequentgovernment intervention, the greater the intensity, the allocation of resources by thegovernment, the greater the impact, especially in the real estate business, since theland rests in the hands of the State, namely the hands of local governments, this whenthe real estate enterprises to establish closer political association can be real estatelinkages between business and government, and thus get more development resourcesand development opportunities, such as the financing facilities, tax incentives andother facilities, then the real estate enterprises to establish strong political connectionsenthusiasm. In this study, based on the proposed opening of China real estate system"black box", we should strengthen the legal protection of property rights and improvethe market environment, the legal environment both compression and politicalassociation’s role in economic activity space.Innovation of this paper is to macroeconomic factors-the degree of the realestate market and micro factors-the real estate business and political associate ofChinese real estate enterprises combine empirical research enterprise performance.