The Research On Political Participation And Enterprise Value Of Chinese New Energy Enterprises

Political participation of enterprises exists in every country, and it becomes an important research topic in management. Those researches about political participation are growing in recent years. But most of them focus on the relation between political participation and enterprise value or profit ability of state-owned enterprise or private enterprise. There are few researches on the relation between political participation and enterprise value or profit ability of enterprises in new resource industry.New energy industry in our country is one of seven newly developed industries. It’s very important for our country and those shareholders to enhance new energy enterprises’ value. According to the survey about political participation of new energy enterprises, it’s about83.8percent senior managers in new energy companies who have governmental background, and about60percent new energy companies which are controlled by government. Political participation for energy enterprises is common.The study purposes to examine the link between political participation and enterprise value of Chinese new energy enterprises. Using samples of new energy during2008-2010, the paper aims to find the non-market factors which influence new energy enterprise value. There are two sorts of hypotheses deduced from manage and economic theories. The empirical results indicate that top managers of new energy enterprises who have governmental experience are good for enterprise value, and ultimate controller who is government is good for enterprise value, too. Further study results indicate that those enterprises’value is better than others if their top managers have central governmental experience. Those enterprises who participates politics in the way of being governmental officer, particularly being local governmental officer can get a lot of policy resource than others. If companies’ultimate controllers who are governments, they may interfere companies normal operation. So it’s worse for enterprise value.The paper structure is mainly divided into six parts. The first chapter is introduction. This review mainly includes the background, the research significance, research methods and innovation points, etc. The second chapter is foreign and domestic theoretical overview about political participation of companies and its influence on their value. This section mainly introduces why there so many enterprises keen on participating politics, what can they get form these activities, and what influence on their value. The third chapter is the analysis of basic theories in management and economy. Two series of hypothesis have been made. They are opposite but all have rationality. Chapter four is survey analysis, including data selecting, variables designing, model establishing, all these are the base for the fifth chapter. The fifth part analyses and tests the result of survey. All descriptive statistical analysis, correlation analysis and regression analysis are based on collected data. In the end the paper put forward the limitations and the prospect of research.The innovations of this paper can be summarized as follows:First is the visual angel which is very unusual. The author choose new energy industry as the object of the research, which makes a breakthrough compared with using the whole market as object of research. Second is theoretical analyzes from different school perspectives, which show interdisciplinary and conscientious in research.