The Influence Mechanism Of The Government-backed Executives On The Firm Performance Of Private Enterprise

Our country is being in the developing stage that is a transition from planned economy to market economy.The economic policy and legal system are still not perfect.The government still controls the allocation of social resources and directs the developing direction of the economy.In recent years,private enterprises maintain good momentum of development.However,due to the defects of the system,they are often treated unfairly in the process of development.Under such institutional background,private enterprises actively establish contact with the government,for example,senior managers take the initiative to be elected the members of deputy to the People’s Congress,in order to facilitate access to resources from the government.At present,a certain proportion of executives of private listed companies had government background.Existing studies have found that senior government backgrounds can have an impact on corporate performance.However,there are still disputes in the academic circles whether it is beneficial to improve the performance of enterprises or harmful to the performance of enterprises.Therefore,the study of this issue about the influence of the government-backed executives on the firm performance of private enterprise has theoretical and practical significance.In summary,the paper chooses A-share non-financial private listed companies in Shenzhen and Shanghai Stock Exchanges from 2015 to 2017 as research samples.Under the guidance of social capital theory,resource dependence theory and rent-seeking theory,this paper takes the executive government background as the independent variable,the enterprise performance as the dependent variable,establishes the multiple regression model,and empirically tests the impact of the executive government background on corporate performance.Besides,this paper discusses the resource advantages brought by the executive government background to the enterprise from three aspects: bank loan,government subsidy and comprehensive tax burden.Through research,we conclude that:(1)More than one-third private companies employ executives with government backgrounds;(2)Private enterprise executives have a government background,which is conducive to the improvement of enterprise performance;(3)Private enterprise executives have a government background,which is conducive to help the companies to gain more long-term loans.But the increase of bank loans can not influence enterprise performance;(4)The government background of senior executives of private enterprises aggravates the comprehensive tax burden borne by enterprises;(5)The government background of private enterprise executives is conducive to help the companies to gain more government subsidies.From empirical results,the government background of private enterprise executives canbring certain resource benefit for civilian battalion enterprise,improve business conditions and effectively improve enterprise performance.But there are also political costs and it creates certain problems for businesses and markets.Based on this,this paper puts forward the countermeasures and Suggestions for the healthy development of private enterprises.This paper makes an in-depth study of the benefits brought by the government background of senior executives to enterprises,which provides a theoretical basis for improving the performance of enterprises,and has implications for the government to improve the allocation of scarce resources.