A Research On The Impacts Of Political Connections On The Growth Of Listed Private Enterprise

Abstract:The universality of political connections of private enterprises has been well known. In recent years, more and more entrepreneurs eager to gain political connections by deputies’ electing or in other ways, and some of them have done it. Whether this initiative can really promote business growth as the same as entrepreneurs hoped to? This article conducts research on it to get to know whether political connections will significantly influence business growth.On the basis of recalling previous article about political connections and business growth, this article analyses the impacts of the political connections on business growth and proposes assumptions based on social capital theory, higher order theory, resource-based theory and principal-agent theory, and conducts non-parametric test and multiple regression analysis to test the proposed hypothesis after quantifying business growth rationally to inspect the impact of political connections on business growth and the adjustment function of institutional environment to the relationship of the former two. This study verified the universality of political connections of listed private enterprises, and found that business growth will change to some extent as the dynamic changes of strengthening or declining of political connections in the time span, and that changes of the position that bears the political connections will cause some varying of business growth level. It verified that political connections have a significant positive impact on business growth, and the lower of the market degree of the district the enterprise in is, the greater the boost is. At last, It puts forward some relevant countermeasure or suggestions and research directions in the future. There are4graphics,19charts and91references in this paper.