Relevance Research Of Political Connection And Corporation Value Of Private Listed Company

Based on the2008-2012A-share private listed companies as research samples, from the political association number ratio, political correlation ratio and the actual controllers’ Political related background of Chinese private listed firms three angles to measure the political association, and to study the relationship between political association of private listed companies and enterprise value.This article adopts the method of empirical study, and carried the system analysis on the political association of private listed companies in our country, including the number of political association statistics, political hierarchy, and the actual controllers’ Political related background of listed companies. They are to measure the political association of Chinese private listed companies. This paper has adopted the Tobin’ Q to measure enterprise value. At the same time, we have adjusted their industry influence, to avoid the industry differences on the final results.The final conclusion of our study is:there is no direct correlation between company’s enterprise value and political association number ratio of private listed companies and political correlation ratio; But there is significant positive correlation between the actual controllers’ Political related background of Chinese private listed firms and the company’s enterprise value.The result shows that the actual controllers’ Political related background of Chinese private listed firms has a great impact on the company, the actual controllers’ Political related background can significantly increase the enterprise value.