|
|
|
|
||||
|
||||
The Impact of Political Connections on Firms' Operation Performance and Financing DecisionsNarjess BoubakriAmerican University of Sharjah - School of Business and Management; HEC Montreal - Department of Finance Jean-Claude CossetHEC Montreal Walid SaffarHong Kong Polytechnic University - School of Accounting and Finance November 29, 2011 21st Australasian Finance and Banking Conference 2008 Paper Abstract: We investigate the impact that the political connections of publicly traded firms have on their performance and financing decisions. Using a long-term event study covering a sample of 234 politically connected firms headquartered in 12 developed and 11 developing countries over the period 1989 to 2003, we find that firms increase their performance and indebtedness after the establishment of a political connection. We also find that the political connection is more strongly associated with changes in leverage and operating performance for firms with closer ties to political power. Overall, our study confirms that politically connected firms gain easier access to credit and reap benefits in terms of performance from their ties with politicians.
Number of Pages in PDF File: 41 Keywords: Political connections, Performance, Event study JEL Classification: G32, G38 working papers seriesDate posted: August 23, 2008 ; Last revised: November 29, 2011Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo6 in 0.500 seconds
