The Resource Effect of Political Connections

Abstract

Abstract:With the transformation and social structure of relationship-oriented in China, political connections widely exist in various. Each year many businesses spent huge amounts of time and money on establishing political connections. Taking GEM Listing Corporations as samples, This paper studied what kind of resources the political connection brought to the enterprise. The result found that political connections and debt financing have a significant positive correlation, and government subsidies have a significant negative correlation, and tax preferences have a significant negative correlation.

The Relationship between the Political Connections and Green Innovation Development of Chinese Enterprises—Empirical Analysis Based on Panel Data of Chinese A-Share Listed Companies

“…China's economic system is dominated by public ownership which resulted in the government's irreplaceable role in economic development; therefore, the role of political connection is particularly important for enterprises. A huge amount of money and time will be spent by the enterprises to establish political connections each year [19]. The above shows that the particularity of Chinese samples during the above time period gives more profound significance to the study of political connections and green innovation than in other Asian countries.…”