Politics Related Effects On Enterprise Performance In Private Listed Companies Of Ultimate Controller In China

Given in the reform of the macro-economic system, the proportion of GDP brought by private companies is growing higher and higher and those marketing private companies got more attention from public to the business pattern, economic benefit and the way of developing. It is emergency to improve the rules in the time of economic transition. In one way, the protection of economic property right always been ingored, the other is the problem of the unbalance between the regional economical development. So the straty gole for private companies is improving the company system and strengthen the contact with government for more governmental resources. The effect pruducted by political connection for marketing private companies has been focused on by public.Base the related theories home and broad, the paper analysis the influence for company benefit brought by political connection combining the rules background of China. After the empirical analysis of the data from 2008 to 2012,the paper put forward three conclusion. First, the political connection from the final controller of private company can increase the benefit. Second, each region has different rules and these difference have an effect for marketing companies outcome. The last, political connection can adjust the unbalance of market rules.The paper give the conclusion that the final controller of marketing private campany can improve benefit. Although the political connection in some extent can protect company from the loss of benefit,there must been a limit,avoiding the powerfor-money deal and collusion between government and business. Given for that,the paper list some reasonable advices. First, the connection between government and business should be transparent in case of the black case work. Only in this way,can private companies get an fair competing market. Secondly, the unlawful act should be published seriously and set up a correct direction of legal market. Thirdly, perfect the environmental of rules and accelerate the reform of marketalization. At last, it is necessary to set up the right relationship between policy and business.