An Empirical Research On The Influence Of Political Connection To The Growth Of The Listed Companies On SME Broad

Small and medium-sized enterprise is a very important part in the development of the national economic and the development of society, especially the listed companies in the small and medium-sized board, which are representatives of small and medium-sized enterprise. Therefore, how to evaluate SMEs’growth, and then explore factors which will affect its’growth, become the core theme in the research of listed company. And in recent years, political connection of the SMEs’directors becone more and more common, director is responsible for the enterprise’s decision-making and management, and his political connection as a resource, play a role as important as equity status and governance structure in enterprise. Therefore, the study of the relationship of political connection and the growth of SME listed company have significant influence in theory and reality.Against the above background, the relationship of political connection and the growth of SME listed company becomes the research objective in this paper. This paper intends to find the mechanism of how political connection influence the growth of SME, and then verify it according to empirical research. This paper takes research methods that is the combination of theoretical and empirical analysis, on the basis of theoretical analysis, this paper establishes the board listed company growth evaluation model, and analysis the mechanism of how political connection influence the growth of SME. This paper choose 196 manufacturing companies in China’s SME board as research samples, and evaluate and calculate the growth score, which used principal component analysis to sample the company’s growth from the profit ability, the growth ability, the risk resisting ability, and the capital operation ability 4 latitude 12 item indexes. And detail the political connection, analyze their relationships between SMEs’growth by using correlation analysis and regression analysis. The results show that direct political connection, indirect political connection, weak direct political connection and likely political connect can promote the growth of SMEs, but strong direct political connection against the growth of SMEs. Based on the results of the empirical research, this paper put forward some policies and suggestions which will promote the sustainable growth of China’s SMEs.The main innovations in this paper are the following three points:Firstly, this paper chose the relationship of political connection and the growth of SME listed company as the research objective, that is an enrichment of the theory about the relationship between companies and political connection; Secondly, through the different dimensions of SME, this paper established the growth evaluation model, make this study had relatively objective dependent variable; Thirdly, this paper study the influence of the different degree of political connection to the growth of SME, which allowed us to more specific understanding the mechanism.