| In the period of China’s market-oriented reforms, many senior managers of privateenterprises are characterized with political association,and political association ofprivate enterprises has become an increasingly common phenomenon. Fundamentally,this phenomenon is caused by the decision of the enterprise seeking profit. Currently,government still holds the right of the configuration of high-quality resources, privateenterprises have to establish a good relationship with the government so that can helpthem get tax breaks, subsidies, trade access and other business resources to create afavorable external environment for the development of private enterprises. Therefore,the political association would have a positive effect for dynamic growth of privateenterprise economic performance.In this paper, the author use529private listed companies in Shanghai and Shenzhenstock exchanges in2009-2012for samples, collects background information ofcompany board members by hand, characterizes the political association of directors ofprivate companies. By building a political association index of private companies, theauthor sets business growth model, then, use multiple linear regression method testinghow the political association associated with business growth of the private enterprises,while care about whether there is any difference in the influence of political associationto business growth between different levels of the market environment.Specifically: in the theoretical research, on the basis of the literature review andcomment on, combined with the background of China’s current economic situation andcompany governance status, put forward the hypotheses in this paper throughtheoretical analysis, and establish the theoretical model. Political association of boardof directors and corporate growth are the independent variables and the dependentvariable in theoretical model, the market index which is external factors affecting therelationship between the two is the moderator, the factors that likely affect thecompany’s growth, namely corporate assets, the gearing ratio, proportion of the largestshareholder are control variable. In the empirical research, first of all, there isdescriptive statistical analysis for each variable; Secondly, use the Pearson correlationcoefficient to test the linear relationship between the primarily variables; once again,test the hypotheses through multiple regression analysis; finally, do robustness testingby replace the grouping method and independent variables, to make sure the empiricalresults in this paper are reliable. The empirical process and data processing use Excel,II Eviews, SPSS17.O and other data analysis software to complete.Results of this study showed that a political association of private enterprises has asignificant positive effect on business growth, and this positive impact is obvious in theregion of poor market environment, such as the slower process of marketization level,the more serious government intervention, the poor performance of the law in the areas,this positive impact will be weakened due to the improve of market environment.The results of this paper show the following revelation: we should allocate thegovernment functions rationally and standardize administrative practices; the politicalassociation of private enterprise must be legal; private enterprises should improve theircore competitiveness; we need to further improve the market environment of privateenterprises. |
