The Research On The Relationship Among Political Connections,Balance Of Shareholdings And Enterprise Performance

In recent years,"made in China 2025" was put forward,requiring manufacturing industry to be in progress of transformation and upgrading transforming from “made in Chin” to “create in China”.Small and medium-sized manufacturing enterprises are facing tremendous pressure of transformation and need to combine internal and external conditions to take practical measures to complete the requirements of transformation and upgrading.In the current Chinese system is still in the process of continuous improvement,many private small and medium-sized manufacturing enterprises choose political connections as a way to improve themselves.Since The Eighteenth National Congress of China Communist Party,China has continued to strengthen anti-corruption efforts,government behavior is under tougher supervision,and the political connections of enterprise itself have certain negative effect on enterprise,Whether political connections can help enterprises to improve the performance is still uncertainty.Although political connections in our country and even the whole world are very common,there are many scholars at home and abroad has done a lot of research for the relationship between political connections and corporate performance,the relationship between the two did not reach a unified conclusion.By analysis,the paper find the reason is mainly related to the difference in definition of political connections,sample selection,the choice of measurement methods.Because of the difference in responsibilities,different executives have different influence mechanism of political connections on corporate performance,but existing research and between the existing mechanism of related research rarely involves in analysis ing the influence mechanism of different top management menbers' political connections on enterprise performance and influence of mutual balance between different top management menbers' political connections on performance.In addition,the role of political connections are closely related to internal corporate governance,and the current research about the effect of balance of shareholding of internal corporate governance on influence of political connections on corporate performance is still less.On the basis of reviewing related literatures of political connections,balance of shareholding and related research theory,this paper discusses the logical relationship among variables and puts forward the research hypotheses of this paper according the discussion,and constructs the data model to test hypotheses by using data of 2012-2014 small and medium-sized private manufacturing listed companies.The main conclusions of this paper are:(1)In the background of The Eighteenth National Congress of China Communist Party,the promoting effect of political connections on enterprise performance has been weakened.The effect of Chairman political connections and General Manager political connections on corporate performance are both more harm than good,namely the political connections of Chairman and General Manager are on each way to harm enterprise performance.(2)The balance of political connections(the distance of between the degree of Chairman political connections and the degree of General Manager political connections,the distance is smaller the balance is larger)strengthened cooperation relationship between Chairman and General Manager so as to promote the growth of enterprise performance.(3)Balance of shareholding can effectively alleviate the damage of the Chairman political connections to enterprise performance,but it has no significant effect on the influence of General Manager political connections on enterprise performance.(4)Balance of shareholding will weaken the positive effect of balance of political connections on enterprise performance.