Abstract:Based on the data(2008-2014) of Chinese listed private firms in manufacturing industries,the paper studies how political connection affects the behavior of employee's benefits and furthermore affects firm performance. We find that political connection firms don't have a higher employee's benefits as expected,though the representative connection has a more negative effect; furthermore,usually firms with political connection have a worse performance but the better employee's benefits do improve their performance,and the role of representative connection plays more. The results suggest that different from common sense,enterprises with political connection take a twisted responsibility for employees. Usually they neglect basic security such as employee's benefits due to the demand for operation and development. However,it's reasonable for private listed firms to establish the political connection,besides a better security system of employee's benefit can make up the inefficiency of operation,which can help achieve rent benefit and improve their performance.