Study On Relations Among Political Connection,Social Responsibilities And Buesiness Performance Of Enterprises Based On The Empirical Data Of Shenzhen SME Board Of Private Listing Corporation

In recent years, the development of small and medium-sized private enterprises is getting its momentum, emerging as an important part of national economy with great proportion. Reviewing the experience of development, small and medium-sized enterprises are indispensable not only in those developing countries which are in its period of transformation but also in economically well-developed countries. It is especially true since the financial crisis in 2007, when the status of small and medium-sized private enterprises is increasingly highlighted in national economy,growing continually as the mainstay of economic development in China. However,small and medium-sized private enterprises are undergoing varied difficulties as China is in the period of transition as well as the nature of enterprises compared with state-owned counterparts. Against this backdrop, it has become the focus of scholars on how to effectively improve the financial performance of small and medium-sized private enterprises.At present, the future development of small and medium-sized private enterprises are mainly restricted by two aspects, including internal and external situations, of which,internal restrictions contains management, operation and so forth. Restrictions from internal situation requires practice for a long time rather a short-time to be solved, while external situation, especially economical and political situation surrounded by enterprises, can be operated well by some strategic manners. Chinese government plays a crucial role in economic and political activities due to its unique political system, with in charge of critical resources for development of enterprises, which exerts direct influence on the business performance of small and medium-sized private enterprises. Inthis case, two main approaches were found in study of domestic and foreign scholars with the aim to gain resources and improve business performance, which are,establishing political associations with governments and fulfilling due social responsibilities.After the Wenchuan Earthquake happened in Sichuan province in 2008, the word social responsibilities frequently appeared in enterprises’ developmental plans. Both domestic and foreign related studies suggested that fulfilling social responsibilities enables enterprises improve its business performance, and also contributes to development in a long time. However, the concept of social responsibilities is still immature in China and cannot function effectively due to inefficiency of Chinese capital market system. For this reason, small and medium-sized enterprises are actively finding alternative mechanism. It is not hard to found that small and medium-sized enterprises are always striving to cooperate with governments to get preferential policies during its development. Fulfilling social responsibilities and political association do help to improve business performance of small and medium-sized enterprises under the premise of certain circumstances. However, will these two approaches conflict with each other?Taking this question as a breakthrough point, this thesis explored the relationship among political association, social responsibilities and enterprises’ business performance in Chinese small and medium-sized private enterprises.This thesis is starting out on the basis of relevant literatures home and abroad,analyzing studies on political association, social responsibilities and enterprises’ business performance. Then, the thesis explored concepts and functional manners of political association, social responsibilities and enterprises’ business performance in several perspectives to give rise to hypothesis later in article, such as, Stakeholder Theory, etc. It should be noted that samples chosen in this thesis were from small and medium-sized private enterprises listed in Shenzhen during the year of 2010 to 2014.Both virtual variables of political association and variables of degree of political association were analyzed in the model to conduct regression analysis, so as to better study influence exerted on enterprises’ business performance by political association,which also, made results more convincing. Though regressions analysis, conclusions were as follows: political association positively related to the business performance ofsmall and medium-sized private enterprises; the intensity of political association positively related to business performance of small and medium-sized private enterprise;the social responsibilities positively related to the business performance of small and medium-sized private enterprises; political association can regulate relations between social responsibility and enterprises performance, usually to a certain degree. After verification of the hypothesis 1, 2, and 3, combined with the development situation of economic market in China, this thesis proposed corresponding suggested policies.