Private Enterprise And Styles Of Political Connection:"Helping Hand" Or "grabbing Hand"?

In our country, private economy suffered unfair treatment for a long time. So private enterprises in our country generally tend to be associated with the government, so as to induce the inconvenience to the development of enterprises which comes from the ownership discrimination. In fact, in our country, the private enterprise is taking an active participate in the political. We can see from the statistics of Jianping Deng and Yongzeng that Political Connection of private enterprises in China accounted for nearly67%.This phenomenon has caused extensive concern of the academia, and scholars have carried out extensive research and get fruitful research results. However, there is a defect, Research ignores the different influence which comes from different type of political connection.From the perspective of the way in which the private companies establish their political connection, there are two main types:the type of Government and the type of Daibiaoweiyuan.The type of Gov is established by two ways:one is that companies invite the retired officials to be the management, the other is that the officials quit to enter the companies. The type of DBWY is established by the way that the management is elected as the DBWY. So, from the perspective of motivation, we believe that although the second type of GOV have enough motivation to promote the company’s performance, the first type of GOV maybe does not, and the type of DBWY also have enough motivation. So, different types of PC has different influence.According to this defect, we speculate that not to distinguish the type of PC maybe the reason resulted in the disagreement. So this paper meant to distinguish the type of PC to discuss their different impact. First, this paper introduces the theories, such as The Social Capital Theory, Rent-seeking Theory and Government Intervention Theory. Then according to the two different opinion, this paper explain the microcosmic mechanism aspects respectively, and find that PC can promote the company’s performance by resource effect and effects of information, but the government intervention will be harmful to its performance. And lastly, we use those companies as sample who list on the main board in Shanghai and Shenzhen for three consecutive years, and build a model to test the impact of the two types of PC.We can see the places of innovation in the following respects:(1)Segment the PC to two types, type of GOV and type of GOV;(2)On the construction of PC index, this paper bright the whole senior management team into the examination scope and value their personal level and unit level at the same time;(3) In the theoretical analysis, this paper deeply analyze the micro mechanism of PC.Through theoretical analysis and the empirical test, we got the following conclusions:(1)By theoretical analysis, under the background of China’s system, PC can both be helpful and harmful to. PC can help promote the company’s performance by Effects of information and Resource effect, however, PC can also damage to the company’s performance by the view of political and management.(2)When mingle the two types of PC,PC has can not make significant influence. It means maybe the costs of PC offset the benefits, but it may also result from the wrong method of regression.(3)When distinguish between type of GOV and DBWY, we find that the type of DBWY has significant positive influence to the company’s performance, and this proves the opinion of Xingqiang Du. We also find that the type of GOV does not have significant influence. It may result from no further distinguish.(4) System environment is the main reason why private enterprises are eager to establish political connection.In order to reduce the political obstacles to enterprise development, the private enterprises have to make association with the government.According to these conclusions, we can know:On the occasion of the government, the government should perfect the relevant system as soon as possible, and make equal treatment for private enterprises. At the same time, the government should strengthen the supervision, so as to restrain the government invention. On the occasion of the private enterprises,they should establish the type of DBWY PC, not the type of GOV PC, because we have proved that the type of DBWY can significantly promote their performance.