The Effect of Political Connection on Private Firm Performance Research based on the Perspective of Regional Diversity and Industry Heterogeneity

摘要

The relationship between government and enterprises is the major issues in the economic reform and development, and Political Connection (PC) is the embodiment of the relationship between government and enterprises. As a result, the paper will select Chinese private enterprises as the research sample, exploring the mechanism of action of PC of enterprise performance in Chinese context. The main research conclusions are as follows: PC is one of the major factors which influence firm's performance. The degree of the local government intervention has a positive moderating effect on the relationship between the existence of PC and firm's performance; the threshold of industry access has a positive moderating effect on the relationship between the existence of PC and firm's performance.