Research On The Influence Of Corporate Political Connection On Government Subsidy Under Different Institutional Environment

Political connection is an important relation resource to enterprise. Corporate holdingthis kind of resource will get more political resources and developing opportunities than othercorporate from government. With these strong supports, corporate will occupy the dominantposition. Existing literatures which focus on the political connection usually discuss therelationship between political connection and one another variable. There is a little researchfocused on deeply mechanism of political connection. Therefore, this article clarified thespecific relationship between political connection and subsidy.This study discusses the political connection as the antecedent variable of subsidy,different intensity of political connection will take diversity subsidies to corporate. In addition,this study introduces corporate donations and institutional environment into our model. Wetreat the corporate donation as the mediating variable and treat the institutional environmentas the moderating variable. Based on the survey data and report data, this article clarifies therelationship among political connection, corporate donation and institutional environment.This study analysis the specific functions of corporate donation and institutional environmentto the political connection.On the basis of empirical analysis, this stud y found these results.(1) the politicalconnections have significant positive influence on government subsidies;(2) corporatedonation is the partially mediating variable;(3) the institutional environment is themoderating variable.