Can the Political Relationship Capital Really Improve Enterprise's Growth Performance? Based on the Empirical Test of Enterprise Life Cycle


Lunlai Wan;Chenchen Ren;


Taking the companies listed in Shenzhen Stock Exchange by the end of 2013 as example,this paper uses the Least Square Model to empirically study the governmententerprise relationship and enterprise's growth performance at different stage in the enterprise life cycle.The result shows that government-enterprise relationship has a positive effect on enterprise's growth performance at the growth stage and has a negative effect on enterprise's growth performance at the mature stage.The closer the relationship is,the more obvious the effect it.It doesn't have a significant effect on enterprise's growth performance at the decline stage.The empirical results demonstrate that the political relationship is indeed a double-edged sword.Therefore,enterprises should selectively develop a government-enterprise relationship appropriate for own development on the basis of fully understanding and grasping the economic consequences brought by the political relationship.


political relationship capital;;governmententerprise relationship distance;;enterprise's growth performance;;enterprise life cycle


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Total: 26 articles

  • [1] FAN Cong-lai YUAN Jing (Business School of Nanjing University, Nanjing 210093, China ), An Empirical Analysis on M&A Performance of the Public Companies of the Growing, Mature and Declining Industries, China Industrial Economy,
  • [2] He Xiaogang and Li Xinchun(Shanghai University of Finance and Economics,Sun Yat-Sen University), Entrepreneurial Competence and Enterprises' Growth: An Empirical Study in China, Economic Research Journal,
  • [3] Wu Wenfeng, Wu Chongfeng and Liu Xiaowei(Antai College of Economics and Management, Shanghai Jiao Tong University), Political Connection and Market Valuation:Evidence from China Individual-controlled Listed Firms, Economic Research Journal,
  • [4] QU Liang1,2,REN Guo-Liang3(1.Xi'an Jiaotong University,College of Economic and Financial Science,Xi'an,Shanxi,710061,China; 2.Zhejiang Gongshang University,School of Business Administration,Hangzhou,Zhejiang,310018,China; 3.Chinese Academy of social sciences,Institute of Industry Economics,Beijing,100836,China), The Effect of Executive Political Relations to the Performance of State-owned Enterprises:and A Simultaneous Discussion on the De-administration Reform of State-owned Enterprises, Economic Management Journal,


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