The Resource Effect of Political Connections

摘要

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.