The Research On The Influence Of The Political Connection Of The Listed Private Enterprises On The Enterprise Value

"Political connection is a common existence in the enterprise",created by foreign scholars Krueger(1974).Compared with China's state-owned enterprises have congenital political association,political association in China's private enterprises is an actively building relationships with government behavior that help private enterprises obtain a relatively fair competitive environment,obtain the required for the development of scarce resources.Private enterprises in the establishment of a political association,is bound to pay some cost,such as: executives will put more energy,enterprises may assume more social responsibility and so on.So what is the effect of political connection on the value of private enterprises? And this issue is of great significance to private enterprises.Therefore,it is necessary for us to study the influence of the political connection of private enterprises on the enterprise value.Firstly,through the literature search method to collect and collate a large number of domestic and foreign scholars on political association research data and summarize these data;Secondly,expounding and analyzing the related theory,then putting forward the corresponding assumptions to study how the political association of private enterprises influence on the enterprise value;Thirdly,according to the four hypotheses proposed in this paper,It is based on the Shanghai and Shenzhen A shares in 2012 to 2014 three years of private enterprises for the study sample,and the use of statistical software SPSS19.0 was used to test four previously proposed hypotheses on the private enterprise political connection,Finally,according to the empirical results,The paper make corresponding explanation and put forward my own proposals.The results of this study showed that the political association of private enterprises has a positive impact on the enterprise value,and with the political strength increased,this positive effect becomes more obvious.Then the political association is divided into the central and the local political association and the study found that the influence of the local political association of private enterprises on the enterprise value influence is superior to central political association of the enterprise value.The private enterprises in accordance with the geographical is divided into political association of private enterprises in the eastern region,the political connection of private enterprises in the middle region,the political connection of private enterprises in the western region.The study found that the effect of political connection on private enterprises in the eastern region is the smallest,and followed by the private enterprise in the middle region,and the influence on the western private enterprises is biggest.As a result,we can see that the political connection as an informal alternative mechanism of imperfect institutional environment,which is of great significance to the private enterprise.