Abstract

http://ssrn.com/abstract=918244
 
 

References (14)



 
 

Citations (25)



 


 



Differences between Politically Connected and Non-Connected Firms: A Cross Country Analysis


Mara Faccio


Purdue University - Krannert School of Management; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)

August 3, 2009


Abstract:     
Evidence from firms in 47 countries shows that companies with political connections have higher leverage and higher market shares, but they underperform compared to non-connected companies on an accounting basis. Differences between connected and unconnected firms are more pronounced when political links are stronger. Differences also vary depending on the level of corruption and the degree of economic development in individual countries.

Number of Pages in PDF File: 35

Keywords: Political connections, leverage, benefits

JEL Classification: D72, F39, G28, G3

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Date posted: July 24, 2006 ; Last revised: August 5, 2009

Suggested Citation

Faccio, Mara, Differences between Politically Connected and Non-Connected Firms: A Cross Country Analysis (August 3, 2009). Available at SSRN: http://ssrn.com/abstract=918244 or http://dx.doi.org/10.2139/ssrn.918244

Contact Information

Mara Faccio (Contact Author)
Purdue University - Krannert School of Management ( email )
1310 Krannert Building
West Lafayette, IN 47907-1310
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
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References:  14
Citations:  25

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