A Study On The Impact Of Political Connection On The Growth Of The Private Listed Companies

China's private economy has been rapidly increased since last three decades and has made a tremendous contribution for the national economic and social development. Private listed companies as the representatives of private enterprises, the ir status is more prominent. So, how to evaluate private companies' growth, and then explore factors which will affect their growth, become the core theme in the research of private listed company. And in recent years, political connection of the private companies' directors become more and more common. Director is responsible for the enterprise's decision- making and management, and his political connection as a effective social resource, play a role as important as governance structure and equity status in company. Therefore, the study of the relationship between political connection and the growth of private listed company has significant influence in theory and reality.Firstly, this paper reviews literatures about the political connection and the growth of private listed company. Then, the private listed companies' growth evaluation model is established. This paper choose 2213 private listed companies in the stock markets of Shanghai and Shenzhen as research samples, and evaluate and calculate the growth score, which used principal component analysis to sample the company's growth from the profitability, the growth ability, the risk resisting ability, and the capital operation ability 4 latitude 10 item indexes. Finally, we detail the political connection into five categories, analyze their influences on private listed companies' growth by using multiple linear regression analysis.The empirical results show that, direct political connection, indirect political connection, weak direct political connection and likely political connect can promote the growth of private listed companies, but strong direct political connection against the growth of private listed companies. Based on the results of the empirical research, this paper put forward some policies and suggestions which will promote the sustainable growth of Chinese private companies.