Research On The Effects Of Political Ties On Enterprise Innovation Performance From The Perspective Of Government Audit

At present government proposes the goal of building an innovative country.Improving the innovation ability has become a hot topic in the corporate field.Chinese entrepreneurs are keen to build political ties.Political ties can bring financing convenience,tax deductions and financial subsidies but it also brings rent-seeking costs,excessive investment and personnel redundancy.So the impact of political ties on innovation performance is uncertain.The role of political ties is influenced by political environment.The improvement of government audit quality combats corruption and reduces the occupation of innovation resources by rent-seeking.Meanwhile government audit helps build a fair market environment,increasing the incentives of market competition for innovation then influencing the political ties to corporate innovation.Based on the rent-seeking theory,resource curse theory and social capital theory,this paper studies the influence of political ties on the innovation performance with the data of 2011-2015 A share manufacturing enterprises.Considering the different ways of forming political ties,this paper examines the differences in the effect of political ties on innovation performance under different ownership.Meanwhile combining with today's severe anti-corruption situation and increasingly perfect government auditing system this paper studies the impact of government audit on the innovation performance of political enterprises.The following conclusions are drawn: political ties have a negative effect on innovation performance.Compared with state-owned enterprises,political ties have greater negative effects on private enterprises.Government audit quality weakens the damage of political ties on innovation performance.Government audit enables officials to regulate their power,inhibiting them to deliver benefits to political affiliates through administrative means,creating fair market environment,increasing pressure and motivation then improving enterprise innovation performance.Based on this the paper gives relevant suggestions.