Political Relations、 Entry Barriers And SME Performance

In C hina, large state-owned enterprises has been dominated by monopolies, resulting in they involve related industries with high barriers to entry, a lot of other companies are difficulty trying to enter. In recent years, with the market-oriented reform of the national economy, a growing number of non-state-owned SMEs have gradually entered the state-owned monopolies in the past. However, due to imperfect legal system to build our market mechanism is not perfect, as well as the strength of the weak SMEs themselves, government-owned enterprises intertwined influence "protection" of subjective and objective factors, it is difficult for SMEs and large state-owned enterprises in full fair competition environment. Therefore, SMEs trying to establish political relations, to help them better access to monopoly industries, in order to gain higher profits. At present, for political relations findings are divided into two categories: one is political relations on firm performance has obvious promotion effect. Political relations is not only a social capital, it is a business with good development of signal transmission, for enhancing business performance is efficient. Another conclusion is the opposite, that the establishment of political relations is not to improve the business performance of even a negative effect. Since the establishment of political relations need to pay a huge unproductive rent-seeking costs, the production will have some negative effects. Therefore, whether it is conducive to political relations improve enterprise performance, the current study does not fully explain the problem, but also to future generations to leave the space research.From the industry into the concept of the theory of industrial organization barriers as a starting point to explore the relationship between SMEs to establish their political influence corporate performance. The article first reviews the literature review by domestic scholars study the basic situation of SMEs, and further to define political relations were defined, summed up the research status of political relations affect the performance right. Secondly, the article from the basic theory of government intervention theory, resource dependence theory and the theory of rent-seeking, combined with results of previous studies, this paper proposes four hypo theses. Finally, a sample of 512 listed SMEs, the establishment of political relations, entry barriers and SMEs run regression model the results of empirical research, and ultimately concluded that article.The results of this paper are as follows: 1.respectively, after controlling corporate fundamentals and corporate governance control variables control variables, the presence of political relations companies, enterprises to enter the greater the chance of high barriers to trade. 2.After each control variable controlling corporate fundamentals and corporate governance control variables, the greater the intensity when corporate political relations, the impact on the promotion of enterprises to enter the high barriers to trade, the more significant. 3.Through the establishment of corporate performance and whether to enter the high barriers to trade in multiple regression model found that companies entering the high barriers to trade to enhance business performance has a significant positive impact. 4. Further research into the extent of high barriers to SME sector performance of a firm found that the greater the degree of enterprises to enter the high barriers to trade, and to enhance business performance more obvious. Based on the above findings, we believe that, for SMEs, to improve enterprise performance and political relations have a significant positive impact.