The Influence Of Political Connection On Enterprise Management Efficiency

The practice of economic development at home and abroad shows that both in the economically developed Western countries and in the developing countries in the transitional period,SMEs are an important part of the national economy and a key force in promoting national economic development.At the current stage,China is a newly emerging and transitional market.Like other transition economies,the following features have emerged: the legal system is not perfect,the phenomenon of government violations of property rights is frequent,the financial market is restricted,private enterprises suffer from policy discrimination,small and medium investors Ineffective protection of interests.In this context,the majority of SMEs will political affiliation as an alternative mechanism for the lack of a formal system,trying to establish a political association for rent-seeking activities for the development of enterprises to obtain key resources.However,at this stage,there is still no agreement on how to intervene in the operation of enterprises by the political parties.The academic circles criticize the enterprises for their active establishment of political connectionsThis article uses the GEM listed companies from 2010 to 2015 as a sample to put forward the concept of operating efficiency of listed companies on the GEM,and uses data envelopment analysis to scientifically measure operating efficiency.The chairman,general manager and non-independent directors are not Key executives of the political association for the interpretation of variables,the establishment of Tobit regression model,on the basis of analysis of the political relevance,type,level of the impact on operational efficiency.The research conclusions show that political association as a whole has a negative impact on business efficiency;after distinguishing between political associations,it is found that the political association between general managers and non-key executives does not have a significant effect on operating efficiency;after distinguishing types of political associations,only representatives are found.There is a negative correlation between members’ political affiliation and operating efficiency.After distinguishing political affiliation levels,it is found that the higher the administrative level of political affiliation,the lower the efficiency of business operation.Based on the above conclusions,this paper puts forward two suggestions: In the era of economic transformation and upgrading and the government’s simple administration and decentralization,the government should reduce the interference in the operation of enterprises,give full play to the market’s automatic adjustment mechanism,and create a fair competition environment for enterprises;Enterprises should face up to the pros and cons of political connections and regard improving their management level as an effective way to promote their development.