A theory of political connections and financial outcomes

被引：8
作者：
Keefe, Michael O'Connor [1 ]
机构：
[1] Victoria Univ Wellington, Sch Econ & Finance, POB 600, Wellington 6140, New Zealand
来源：
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE | 2019年 / 61卷
关键词：
Political connections; Lending decisions; Social objectives; CORPORATE GOVERNANCE; GOVERNMENT OWNERSHIP; EXPROPRIATION; PERFORMANCE; FIRMS;
D O I：
10.1016/j.iref.2019.01.009
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
I model the effect of political connections through the channels of lender compensation, contract enforcement, and social objectives on financial outcomes such as interest rates, default rates, financial constraints, investment decisions, and the manager's decision about whether to be politically connected or unconnected. The model shows that the effect of political connections on financial outcomes depends upon the relative importance of each channel. By demonstrating the influence of each channel, the model helps explain many contradictory empirical findings about the relationship between political connections and financial outcomes.
引用
收藏
页码：108 / 127
页数：20
相关论文
共 50 条
  • [21] Political connections, bailout in financial markets and firm value
    Banerji, Sanjay
    Duygun, Meryem
    Shaban, Mohamed
    [J]. JOURNAL OF CORPORATE FINANCE, 2018, 50 : 388 - 401
  • [22] The effect of political turnover on firms' strategic change in the emerging economies: The moderating role of political connections and financial resources
    Choi, Seong-jin
    Liu, Huilong
    Yin, Jun
    Qi, Yunfei
    Lee, Jeoung Yul
    [J]. JOURNAL OF BUSINESS RESEARCH, 2021, 137 : 255 - 266
  • [23] Board political connections and financial fraud: The case of business groups in South KoreaBoard political connections and financial fraud: The case of business groups in South Korea
    Dong Shin Kim
    Seung-Hyun Lee
    [J]. Asia Pacific Journal of Management, 2024, 41 (4) : 2119 - 2153
  • [24] Political connections and the cost of equity capital
    Boubakri, Narjess
    Guedhami, Omrane
    Mishra, Dev
    Saffar, Walid
    [J]. JOURNAL OF CORPORATE FINANCE, 2012, 18 (03) : 541 - 559
  • [25] Political connections and the value of cash holdings
    Kusnadi, Yuanto
    [J]. FINANCE RESEARCH LETTERS, 2019, 30 : 96 - 102
  • [26] Political connections and labor investment efficiency
    Karami, Gholamreza
    Mehrani, Sasan
    Boshrouyeh, Salman Beik
    Ezadpour, Mostafa
    Mohebbi, Masoud
    Samavat, Milad
    [J]. INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 2024, 89 : 568 - 580
  • [27] A bibliometric analysis of political connections literature
    Ahmed, Fatma
    Hussainey, Khaled
    [J]. REVIEW OF ACCOUNTING AND FINANCE, 2023, 22 (02) : 206 - 226
  • [28] Effect of political connections on corporate financial constraints: new evidence from privatization in China
    Huang, Ke
    Fang, Sheng
    Xu, Changsheng
    Qian, Xuesong
    [J]. APPLIED ECONOMICS LETTERS, 2019, 26 (08) : 638 - 644
  • [29] Does the form of state ownership and political connections influence the incidence of financial statement fraud?
    Wang, Yang
    Ashton, John K.
    Liu, Jia
    [J]. EUROPEAN JOURNAL OF FINANCE, 2024, 30 (18) : 2111 - 2136
  • [30] The effect of the political connections of government bank CEOs on bank performance during the financial crisis
    Chen, Hung-Kun
    Liao, Yin-Chi
    Lin, Chih-Yung
    Yen, Ju-Fang
    [J]. JOURNAL OF FINANCIAL STABILITY, 2018, 36 : 130 - 143
12345