The Correlation Between Political Conections And Firm Value Of Executives In Private Listed Companies

Since the reform and opening up,our government has carried out a series of economic reforms,China’s market economy has been rapid development,economic system continues to international standards.Although China’s existing economic system is still the public ownership as the main body,a variety of ownership economy and common development,but China’s private enterprises in government support and their own efforts,has grown into an important part of the national economy,in promoting China’s economic development and industry Structural optimization and upgrading play an important role.Although private enterprises have made outstanding contributions,but its development and growth process is still subject to financing difficulties,high barriers to unfair treatment of industry barriers.In this real situation,the establishment of private enterprises in private relations has become a general situation.For private enterprises,and the government to establish a good relationship as an alternative protection mechanism,has become an important development strategy.But in 2012,after the 18 th National Congress held in China,the country showed a tough anti-corruption determination,adhere to the "flies tiger playing together",not let any bite of the law,the social environment and the market environment is well managed.This paper deeply studies the influence of the change of the post-18 th political environment on the relationship between political connection and enterprise value.In addition,this paper also selected tax incentives and financial subsidies to study the two political links on the impact of corporate value,for more in-depth study of its mechanism of action.This paper first combs the domestic and foreign research status,elaborated the political association and the enterprise value related theory,on this basis put forward the hypothesis of the article,chooses the 2011-2015 private listing company in Shanghai and Shenzhen as the research sample,After the corresponding processing of the data,the use of SPSS19.0 regression to get private listed companies to establish political relations on the value of the relationship between the value of the enterprise,and finally,the theoretical results of this paper analysis and put forward the corresponding development proposals.The results show that the establishment of political relations in private enterprises have a positive impact on the value of enterprises,but after the 18 th century,this effect tends to weaken.Political association will have a negative impact on corporate value through tax incentives,subject to rent-seeking assumptions.Political relations will also have a positive impact on corporate value through financial subsidies,subject to efficiency assumptions.But in the eighteen after the adoption of these two channels,political relations for the impact of corporate value to reduce.This paper studies the relationship between corporate political relevance and enterprise value in theory and practice,and can provide some reference for later academic research.