Political Connections and Corporate Performance of Private Listed Companies:Government Intervention or GuanXi?
基于2004-2006年中国民营上市公司数据，区分官员型与代表委员型政治关联，发现前者因政府干预损害绩效，后者因关系资源提升绩效。
Based on the sample of private listed companies from 2004 to 2006 in Chinese capital market, this paper empirically examines the effect of different types of political connections on corporate performance. Politi- cal connections are classified as officials connections and members of People's Congress (PC) and Chinese People's Political Consultative Conference (CPPCC) connections. The authors use Hausman ap- proach and simultaneous equations to test and control the endogenesis between different types of political con- nections and corporate performance respectively. The results show that officials connections have significant negative effects on the performance of private listed companies, which supports the government in- tervention argument However, the members of PC and CPPCC connections have significant positive effects on the performance of private listed companies, which supports the GuanXi argument