The Study on Influence of Chinese Enterprises' Political Connection to Their Performance

摘要

China is on the progress that transform from political governance to economic governance. The United political and economical system makes that the methods to evaluate the political connection of foreign research are not fit for Chinese environment. So in this paper we push the "Political Connection Degree" (PCD) concept, which makes us can evaluate Political connection from enterprise aim administrative, resources distribution administrative, and agent administrative three points of view. Then we can use this concept to analyze the influence of PCD to enterprises' performance. Through research we found that the enterprises performance is negative connected with PCD, especially for passive connected companies this negative influence is very signification, but for positive connected companies this phenomenon is not very clear.