State-owned Share、political Participation Of Private Entrepreneurs And The Convenience Of Enterprise Financing

China is in the period of economy transition, private enterprises are facing manyrestrictions and hampers during their and growing stage，among them financing plight isthe prominent problem.But in China,the bank credit resource and many other importantresources are still absolute controlled by government.In order to seek betterdevelopment,private enterprises will establish good relationship with the government.To some extent,political connection can provides financing convenience to privateenterprises.Currently,the definition of political connection is mostly from the perspectiveof political participation of private entrepreneurs,but the research on this phenomenonthat is blank.This paper first studies the influence on bank loans when the privateenterprises.In this paper, we have focused private listed corporations from2006to2012as the research object, according to certain principles, we finally got1679samples.Through theoretic analysis and empirical testing,we consider the influence on theenterprise obtaining bank loans when the private enterprises introduce or holdstate-owned shares,at the same time, in order to study motivation mechanism of thisphenomenon, furthermore,we examines the substitution relations between introducingor holding state-owned shares and the political participation of private entrepreneurs onenterprises obtaining bank loan. The results showed private enterprises whichintroduce or hold state-owned shares will get more bank loans and longer loan period,and it is replaceable with political participation of private entrepreneurs on acquiringbank loans.At present, the bank loan financing is still an important source to privateenterprises, for private enterprises，ease the enterprise financing difficult problem toexpand the productive forces, perfect the capital chain and improve the overall marketcompetitiveness all have very important realistic meaning.