Research On The Relationship Between Political Connection Of Private Enterprises And Accounting Earnings

In recent years, private enterprises have developed rapidly, become an important driving force to promote social progress and economic development. China is in the the special period of economic transformation, the success or failure of the private enterprises directly determines the success or failure of economic restructuring, the transformation of the mode of growth of private enterprise accounting earnings decides China’s economic growth mode which changes from quantity growth to the quality-oriented growth. So It is very important to make sure private enterprises developed well. When private enterprises are focus on their own development, they can also use of political association enhance accounting earnings, political association is the corporate initiative to implement, establish contact with governments through direct and indirect channels, the connections can bring convenience to the business development. Private enterprises has less support of government than state-owned enterprises.and the enterprises external environment is unstable,so private enterprises need a safeguard, government can provide this protection, because the government has allocated powers.So if private enterprises want to maintain a good development,they must establish good relations with the government----Political Connection.Political connection includes the following four types:Directly participate, Stimulation of armamentarium, Guide policy and actively communicate. This paper focuses on the influence of private enterprises accounting earnings by the various types of political connection.Based on the results of the qualitative analysis presented empirical assumptions, established mathematical model, test model using descriptive statistics, correlation analysis and regression analysis methods. Put forward the following suggestions:First of all, Improve the environment of Political connection, Secondly, make suer rational use of political connection, Includeing actively use directly participate, use Stimulation of armamentarium, Guide policy and actively communicate reasonable. Hope that the study results can improve the accounting earnings of private enterprises, the sustained and healthy development of private enterprises can be promoted, make sure China’s economic transformation to succeed.