The Impact Of Political Connections On Firm Performance

Marketization is still going on in full swing in China.Various types of companies have gradually become the main players in the market economy.However,the role of the government in resource allocation cannot be ignored.This is also an important reason why the political connection phenomenon is widespread in our country.However,scholars have not reached a unified conclusion about whether political associations have brought positive or negative influences to companies.Although the establishment of political associations will bring resources such as knowledge,information,and technology to enterprises,in order to establish political connections,enterprises need to invest in corresponding costs and costs,which may damage the interests of enterprises.Therefore,the impact of political connections on firm performance depends on the high and low revenue and cost.Science and technology are primary productive forces,and the establishment of science and technology to promote the competitive advantage of enterprises can,on the one hand,help the company maintain an invincible position in the fierce international competition.On the other hand,it is conducive to enhancing China's overall national strength and promoting the prosperity of the country's economy.Strengthening investment in R&D has a profound influence on the development of enterprises.The development of science and technology and the investment in R&D are inextricably linked.Therefore,this article takes the information technology industry as a research sample and tries to explore the relationship between political connections,R&D investment,and corporate performance.This not only has important practical significance,but also has important theoretical significance.This article mainly uses R&D investment as an intermediary variable to explore the impact of political relevance on corporate performance.First chapter mainly introduced the background of the topic,the significance of the topic,research methods,and research framework.Secondly,it sums up the relationship between political correlation and corporate performance at home and abroad,the relationship between political relevance and R&D investment,the relationship between R&D investment and corporate performance,and makes a brief review,analyzing the mediating role of R&D investment.Then,based on government intervention theory,higher-order theory,resource-based view,and technological innovation theory,the theoretical analysis of the relationship between political connections,R&D input,and corporate performance is presented.Based on this,the research hypothesis of this paper is put forward,which lays a solid foundation for the following empirical research.This article takes the data of our country's information technology industry from 2012 to 2016 as a research sample.Based on theoretical analysis,we use SPSS 21.0 software to conduct empirical analysis,combining theories and politics,and verifying that R&D investment is between political association and corporate performance.This article takes the information technology industry as a sample and draws the following conclusions: The political association of private listed companies in the information technology industry has a negative impact on R&D investment;The political association of private listed companies in the information technology industry has negatively impacted corporate performance.Impact;The R&D input of private listed companies in the information technology industry has a significant positive impact on business performance,but as the lag period increases,the impact gradually weakens;The R&D input of private listed companies in the IT industry is politically related In the relationship with business performance,it plays a role of some intermediary.