Political Connection of State-Owned Enterprises: An Analysis Based on the Listed Companies of Shanghai and Shenzhen Stock Markets

Political connection of state-owned enterprises (SOEs) is a relatively sensitive topic. From the perspective of the SOEs' tax burdens, the relationship between the tax burdens and the political connections of the SOEs at different administrative ranks is researched in this paper. The research shows that the effects of political rights and political cost co-exist in the political connections of the SOEs as the requirements of reinforcing the corporate social responsibility and inspiring the economic development and ensuring the financial income are imposed on the SOEs. The "effect of political rights'' exists mainly for the political connections of the SOEs at provincial level or above, while the "effect of political cost'' exists mainly for the political connections of the SOEs under provincial level.