The Relation between Performance and Political Connection- Evidence from China listed Corporations

• Main Authors: Tzu Chun, 劉姿君
• Other Authors: Tai Ma
• Format: Others
• Language: en_US
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/csx2na

碩士 === 國立中山大學 === 財務管理學系研究所 === 96 === The results show that political connection has positive relation with ROE, but negative with ROA which means businessmen seek rent by from government and meanwhile, politicians extract rents from companies they manage. If members of Committee of the Chinese’s People’s Political Consultative Conference and firms’ Community Party also serving on the board have great influence on firms’ performance and resource. Besides, poor performance does not lead firms to gain political connection. Most import, power transition does not influence firms’ value, especially those with old political connection.