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Overview of Political Connections The main motivation of this model shows that political connections have greatly influenced on corporate performance. There are enough evidences that prove that financial constraint is considered major obstacles to the development of corporations. Political connections are beneficial to remove such types of barriers by utilization their sources. These associations have a significant impact on the labor market due to social networks. Therefore, it shows that these peers have the highly positive impact on firm efficiency and performance. To survive, in the business world it is very crucial for a corporation that works at social stander. Corporate social responsibilityis also known as another channel through which firms can promote their performance [1]. It motives the potential investors that have a great influence on the firm’s value [2]. These are some factors that are proving that political connections are beneficial for the development of firms.

A Study of Impact Mechanism of Political Connection on Enterprise PerformanceBased On the Perspective of Agency Theory