State-owned Equity,political Identity Of Entrepreneurs And Financing Convenience

China's socialist market economy has been vigorously developed,and private enterprises have become the real participants in the market economy Since the reform and opening up.In recent years,private enterprises are facing more and more fierce competition with the advancement of global economic integration.All countries have appeared the phenomenon of economic and political integration in order to deal with this situation.China's government has absolute control over the allocation of bank loans,government subsidies and other resources.Therefore,private enterprises will establish contact with the government in order to seek better development.Our country should provide informal alternative protection for private enterprises,thus enhancing the convenience of financing for private enterprises.According As far as the existing literature is concerned,most scholars study private enterprises from the perspective of the political identity of entrepreneurs,whlie less research from the perspective of state-owned equity.At present,China is actively promoting the reform of mixed ownership.Private enterprises can adapt to the trend of reform,and optimize their ownership structure in the way of state-owned equity,which can not only enhance the vitality and competitiveness of private enterprises,but also promote the further development of enterprises.This paper not only regards private enterprise adapting state-owned equity as an important political connection to study,but also adds two variables of financing costs and government subsidies on the basis of the private enterprise to obtain the bank loan,and further perfects the previous analysis to the financing convenience and makes the research content more comprehensive.This paper adapts the method of combining theory with demonstration and gets the following results: First,the higher the proportion of state-owned equity,the more private enterprises receive government subsidies and bank loans,and meanwhile it can further reduce the financing costs of enterprises.Second,the existence of the political identity of private entrepreneurs can enable enterprises to obtain more government subsidies and bank loans.However,it did not reduce the financing costs of enterprises.Third,private enterprises posessstate-owned equity and entrepreneur's political identity,they have an alternative relationship in the financing convenience of enterprises.Through the above conclusions,in the current market environment,it can be seen that this political connection at the institutional level of state-owned equity may be a more institutionalized and standardized form of association,compared with the political identity of entrepreneurs-this political connection at the personal level,and its positive impact on private enterprises is better than the political identity of entrepreneurs.