Corporate Governance,Political Connection And Corporate Performance

Political relevance is a cross-disciplinary research field of many disciplines,and it is an important component of non-market factors affecting corporate performance.Although political connection is an important factor affecting the performance of enterprises,there is still controversy about how it affects enterprises,and whether there is a certain transmission mechanism between the two,which we need to explore in depth.Secondly,corporate governance is also a major factor affecting corporate performance.In the past,when we studied the impact of corporate governance on corporate performance,we usually only studied the impact of a small part of the internal governance environment factors,such as the proportion of the largest shareholder,the two-position status of the chairman,etc.It is one-sided.This paper will divide the factors affecting the internal environment of corporate governance into the following dimensions: equity structure.Structure,controlling shareholder behavior,shareholder meeting characteristics,board of directors characteristics,board of supervisors characteristics,management characteristics,information disclosure and debt mechanism,through the principal component analysis method to reduce the dimension of corporate governance index,and ultimately through corporate governance index to study the impact of corporate governance on corporate performance.At the same time,the interaction between corporate governance and political linkages,that is,the interaction between government and enterprise will have a certain impact on corporate performance.This paper studies the impact of corporate governance and the interaction between various dimensions and politics on corporate performance.Selecting the data of 1735 listed A-share companies in China from 2012 to 2017 as the research object,this paper mainly studies the impact of political linkages,corporate governance on corporate performance alone,and the interaction between corporate governance and political linkages on corporate performance.Through normative research and empirical research,this paper first reviews the relevant literature at home and abroad,analyzes the literature on the relationship between corporate governance,political linkages and corporate performance,and combines with our own background and relevant theoretical basis,obtains its own research ideas.Secondly,this paper elaborates the impact of corporate governance on corporate performance,the impact of political linkages on corporate performance,and the impact of the interaction of corporate governance and political linkages on corporate performance.Through principal component analysis and OLS regression,the following conclusions can be drawn: First,corporate governance index of listed companies has a positive impact on corporate performance,in which ownership structure,shareholder meeting characteristics,board characteristics,management characteristics,information disclosure,debt mechanism index can improve corporate performance,and strengthening management can improve corporate performance.Secondly,political connections can increase the sensitivity of enterprises to capital structure,thus improving the performance of enterprises.Third,the interaction between corporate governance and political linkages plays an important role in promoting corporate performance.