Politics Related Effects On Enterprise Performance In Private Listed Companies

Global economy’s fast development produces more fiercely global competition in the worldwide. For surviving and developing in the fierce competition market, scholars and practitioners began concerning different influencing factors of organizational performances in recent decades. Under this background, political connections have been put forward; political connections’ influencing on organizational performance has also been researched by many people. Even like this, there are not the unified attitudes toward this topic. Considering about China’s special political and economic background, along with the special situation of China’s private enterprises, undoubtedly researching and studying the influences of political connections on organizational performance is really more important. This paper finds the joint:Senior Executives of China Private Companies with Political Connections Background. With the role and influences of this joint, this paper wants to find out the effect of Political Connections on organizational performance in China’s private companies.For achieving the above objectives, this paper will use rich enough data to establish one model to quantitatively understand and analyze the relationship of political connections and organizational performance. Main data are selected from the listed China Private Enterprises. The whole research thoughts can be stated as following:Four assumptions have been put out, those are about the influences of Political Connections on organizational performance. These four assumptions are got basing on the literature review. After this, one model will be established to test the above four assumptions. Toward the model and relative data, regression analysis will also be made. With all the above reasoning and argument, it can be got the Senior Executives’political background of China Private Companies plays positive and helpful influences on organizational performances. Since this can help the organization easily to get rich capital supporting from both bank loans and government grants.