The Study Of Relationship Between Political Connections And Enterprise Income

Political connections as an influential relationship between government and enterprise, widely exist in the process of economic development countries in the world. At present, China is in a special period of economic transition, laws and systems need to be perfected, as the special bridge for government and enterprise, political connection can bring many benefits for enterprise.In recent years, the world raised a hot wave of political connection study, through literature review, we found that the majority of domestic and foreign literature research were the effect s of political association to corporate behavior or enterprise management, such as political connection can make enterprise enjoying the financing advantages, tax breaks and subsidies, what’s more, it can affect the result of the enterprise audit. Although political connection studies have made more fruitful results, the study perspective of political connection is wide, it is difficult to form a unified standard in the measurement problem, and the research methods are much single. This paper avoids the political relevance of uncertainty measure, selects directly the typical people-NPC-as the object of study, empirical studies that China part-time system of NPC delegates provides second identity to executives in the enterprise, whether the NPC part-time system can realize the demand of enterprise’s benefit, and final brings enterprise the profit maximization.Based on the political connection way of the 11th NPC, this paper selected the a-share listed companies from 2008 to 2012, studying the influence of the NPC who also are enterprise executives to earn earnings by adopting the combination of theory and empirical research method. At the same time, in order to further study the influence factors of executive of NPC in the enterprise income, this article chooses the NPC sample, respectively studies the influence factors of income differences of the state-owned enterprises and non-state-owned enterprises in the perspective of different nature of equity. Study conclusion shows:(1) The enterprise income from enterprise executives who also are NPC is significantly higher than the enterprise executives who are not NPC; (2) Equity properties will affect enterprise earnings, and the influence of non-state-owned enterprises political connection is more obvious than state-owned enterprises; (3) the influence of enterprise income is larger in the company which executives are re-election than executives are not, and the differences perform more obvious in non-state-owned enterprises; (4) In non-state enterprises, executive positions will affect enterprise income, among them, the influence of the chairman who are also NPC is larger, and the differences of the executive type in state-owned enterprises is not obvious; (5) The influence of the external environment of enterprise on enterprise income is smaller.