Political Connection and Credit Risk: Evidence from China A-Share Listed Companies

• Main Authors: HONG, LI-YA, 洪麗雅
• Other Authors: CHEN,DA-BAI
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/43754940388181325552

碩士 === 東吳大學 === 會計學系 === 102 === The purpose of this study is to investigate the correlation between political connection and credit risk by the enterprises in China, and considers the influence of various degrees’ political connection on credit risk. Due to state-owned enterprises and private enterprises, the largest shareholder of the nature of the differences, so we want to know with different property right of those enterprises, whether is the state-owned enterprise’s credit risk lower than the private enterprise’s. Again the state-owned enterprise is related to government directly. As the result, the hypotheses number two and number three would investigate private enterprise only. To know whether is the private enterprise with political connection’s credit risk lower than the private enterprise without connection. In the private enterprise with political connection, whether the high degree’s political connection of majority shareholder and top manager make the lower credit risk or not. This study's results show that the credit risk of state-owned enterprise lower than the private enterprise, because of the different property right of those majority shareholder. Representing the interests of creditors can be protected. Besides, there was no significant relationship between the private enterprise’s political connection and the credit risk; making political connection didn’t affect the credit risk to a health private enterprise.