Study On The Influence Of Political Association On The Investment Efficiency Of Private Enterprises

In recent years,with the development of the market economy and the growth of free trade,the investment of private enterprises in the overall social investment has been rising day by day,occupying an important position in the overall social investment in my country.However,under my country’s current system,state-owned enterprises rely on state-owned assets to establish links with the government.Compared with private enterprises,whether they are in the distribution of state resources or financing,they have received corresponding care.Most powerful private enterprises hope to establish business relations with the government to improve the operation of the enterprise,which raises the issue of political connection of private enterprises.The investment decision of the enterprise itself is often directly or indirectly interfered by government forces.Based on this background,this article explores the impact of private enterprise’s political connection on the investment efficiency of private enterprises.This paper theoretically explores the causes,economic motives and methods of the political connection of private enterprises,and further discusses the impact of private political connection on investment efficiency and the ways to influence it.On this basis,taking Dun’an environment as a case,through studying the political connection of Dun’an environment and the recent investment efficiency of Dun’an environment,the influence of private enterprises’ political connection on investment efficiency and the specific action mechanism were discussed.This paper finds that private enterprises have a real need for political connection,and the government also has a relationship with private enterprises because of their political performance.Government performance and private enterprise investment behavior are coordinated,but the investment efficiency of private enterprises does not necessarily increase with the achievement of government performance.And based on the case study of Dun’an Environment,it was found that the political connection of Dun’an Environment brought some convenience to it,and the government also received some soft returns,but its investment efficiency was negatively affected.Therefore,this paper believes that the political connection of private enterprises will have an impact on their investment efficiency,and may have a negative impact.Based on this,corresponding suggestions were given for improving the investment efficiency of private enterprises.