The Research For Corporate Governance,political Connection And SME’s Performance

As the China’s economic reform, the government relaxed controls on the market, SMEs get more development opportunities. Since china is still in the period of economic restructuring, there are still many restrictions in resource acquisition, innovation and financing of SMEs, in order to obtain more resources, SMEs will establish contact with government actively, they hope change the status of enterprises resource acquisition and financing difficulties through political connections. In addition, as the process of our country market-oriented accelerate, the external environment and the corporate governance businesses are improving, SMEs are experiencing the “economic governance” to “administrative governance”, under the dual governance environment, research the relationship among corporate governance, political connections and corporate performance have an important role to improve the performance and promote the development of enterprises. Based on the above background our paper study the corporate governance, political connections and SMEs performance,it has important significance to our society, government and enterprises.The paper firstly hackles the previous literature and information,summarizes the present research status at home and abroad of corporate governance, political connections and performance,and makes an objective evaluation,then survey the status of SMEs, determine the research ideas. Secondly, the paper describes the connotation of corporate governance, political connections and performance, analyzes the feature of SMEs, and describes the research related theory such as property rights theory, resource dependence theory, agency theory, rent-seeking theory, we lay the foundation for the following research. Thirdly, the paper base on the status and the feature of SMEs,from the ownership concentration, board governance and executive management measure corporate governance, then analyzes the relationship among corporate governance, political connections and performance theoretically, proposes hypothesis, builds the regression model and defines variables. Fourthly,the paper uses 2007-2013 panel data of SMEs as study sample, then analyzes the correlation among the variables and regression analysis, finds the intrinsic relationship among corporate governance, political connections and corporate performance accurately, the result is some research hypothesis are verified. Finally, the paper summarizes and explains the conclusions in the part fourth, then proposes main recommendations from corporate governance and political connection; hopes to establish a good external and internal environment to improve the SMEs performance.To study the relationship among corporate governance, political connections and performance of SMEs based on the current environment of economic development. It is conducive to grasp the general law of SEMs development and enrich the enterprise strategies theory. It is also conductive to recognize the advantage and shortage of SMEs and develop the SMEs healthy and sustainable. It has a certain theoretical value and practical significance.