Impact of Political Connections on Operational Performance: The Evidence from Poland

49 Pages Posted: 1 Aug 2013

See all articles by Krzysztof Jackowicz

Krzysztof Jackowicz

Kozminski University

Łukasz Kozłowski

Kozminski University

Paweł Mielcarz

Kozminski University

Date Written: July 31, 2013

Abstract

This study analyses the impact of political connections on the operational performance of non-financial firms in a context of a post-transition European economy. Using a new and detailed data set covering the 2001-2011 period, we found that politically connected firms are much more numerous in Poland than previously reported in the literature. We established that political connections usually lower profitability measured on the level of income from sales. However, the relationship between political connections and operational performance was affected by the characteristics of the former. Namely, the negative impact was the strongest when a firm possessed multiple connections, had politically connected members of the supervisory board and employed ex-politicians with central government experience. Therefore, our findings did not support claims based on the resource dependence theory that political connections improve the operational performance of firms.

Keywords: political connections, operational performance, listed firms, emerging economies

JEL Classification: G30, H80

Suggested Citation

Jackowicz, Krzysztof and Kozłowski, Łukasz and Mielcarz, Paweł, Impact of Political Connections on Operational Performance: The Evidence from Poland (July 31, 2013). Available at SSRN: https://ssrn.com/abstract=2304189 or http://dx.doi.org/10.2139/ssrn.2304189

Krzysztof Jackowicz

Kozminski University ( email )

ul. JagielloDska 57/59
Warsaw, 03-303
Poland

Łukasz Kozłowski

Kozminski University ( email )

ul. Jagiellońska 57/59
Warsaw, Mazowieckie 03-301
Poland

HOME PAGE: http://www.kozminski.edu.pl

Paweł Mielcarz (Contact Author)

Kozminski University ( email )

ul. Jagiellonska 57/59
Warsaw, 03-303
Poland

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
102
Abstract Views
847
rank
373,322
PlumX Metrics