Abstract：In the process of economic transition in China, the development of private enterprises is constrained by the institutional environment. And private property rights protection is an important problem. This study takes two aspects of corporate behavior to illustrate private property protection level of private enterprises, and they are the investment confidence and innovation power. By validating the different types of political connection affecting private protection level, this study illustrates the relation of the political relations and private property rights protection. The results show that the political connection in private enterprise can effectively protect private property rights. The state-owned equity can protect enterprises’ private property rights more effective than the private entrepreneurs. In the poor institution and environment areas, the political connection will promote the private property protection level.
2016, Vol. 13 
