Research On The Impact Of Political Connections On The Efficiency Of Credit Resource Allocation

The allocation efficiency of credit resource affects the normal production and operation activities of enterprises,which is related to the market competitiveness of enterprises.And our government adjusts the economic structure by the supply-side reform to achieve the optimal allocation of elements,especially the allocation of credit resources.In this context,the level of credit resource allocation efficiency is not only critical to the future development of enterprises,but also affects the process of China's reform.There has been a very rich study of the allocation of credit resources for political connection in literature,but whether such credit support leads to inefficiency and what inefficiencies lead to with lack of in-depth research.It first discusses the theory of political connection,investment efficiency of enterprise and the value of enterprise and relevant literature at home and abroad.On this basis,the data of private A-shares listed companies in China from 2011 to 2015 are taken as the sample,and the virtual variable method is used to measure the political connection and to distinguish different types of political connection.Specifically investigating the relationship among the establishment of political connection,the scale of credit resources and investment efficiency,the value of enterprises by empirical methods.First of all,it found that private enterprises of establishing political connection can get more credit resources from the point of view of financing,and secondly from the point of view of investment,private enterprises with political connection obtain more credit resources,the more easily the enterprise have excessive investment,and the larger the scale of credit resources is,the worse the value of enterprises is.This result shows that political connection has a significant negative impact on the efficiency of credit resource allocation.It further classifies the political connection in this article.Compared with the political connection of representatives,private enterprises that establish political connection government officials gain more credit resources,are more prone to excessive investment;the political connection of representatives can weaken the negative impact of the bank loan on the value of the enterprises,while the political connection of government officials can not weaken this negative impact.It focuses on the influence of political connection on the allocation efficiency of credit resource in this paper,providing the evidence of the inefficiency of political connection arrangement,and gives some enlightenment to the enterprises for correctly understanding political connection and developing healthily and orderly.Countermeasures and suggestions are put forward in this article:on the one hand,the enterprises keep in contact with the government based on rule of "clear" and "close":on the other hand,improving the internal system of enterprises to constrain irrational behaviors of senior managers;finally,enterprises should correctly understand political connection,based on their own reality,establish long-term development goals.