The relationship between political connections and firm performance: An empirical analysis in Europe

Rocca, Maurizio La; Fasano, Francesco; Cappa, Francesco; Neha, Neha

doi:10.1016/j.frl.2022.103157

Cited by 20 publications

(8 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In this article, the political connection variable is a chairman or a general manager who has served or is currently serving as a government official, and this is assigned a value of 1; otherwise, it is assigned a value of 0 (Rocca et al, 2022). The results in Table 10 show that the positive effect of government environmental concerns on green innovation is significant at the 5% level in politically connected firms.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Chen,

Zhu,

Ding

et al. 2023

Bus Strat Env

View full text Add to dashboard Cite

The objective of this study is to examine the impact of government environmental concerns on green innovation and whether this has a “leverage effect” or a “crowding‐out effect.” This study employs a two‐way fixed‐effects model to conduct an empirical test using panel data from 2010 to 2020 on Chinese firms listed in heavy‐polluting industries. The results suggest that an increase in government environmental concerns can promote corporate green innovation. However, government environmental concerns primarily stimulate strategic innovation rather than substantive innovation. After a series of robustness and endogeneity tests, the conclusions of this paper still hold. Corporate green innovation induced by government environmental concerns is not the “leverage effect” superimposed on existing innovation activities but the “crowding‐out effect” of other technological innovation. The heterogeneity tests in this paper indicate that the impact is more pronounced for firms with poorer environmental conditions, stronger political connections, and richer executive backgrounds.

show abstract

Section: Empirical Results and Discussionmentioning

confidence: 99%

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Chen,

Zhu,

Ding

et al. 2023

Bus Strat Env

View full text Add to dashboard Cite

show abstract

“…However, the female Muslim CEO, postgraduate degree of education have a negative effect on the relationship between risk-taking and firm performance. Furthermore, in European enterprises, Rocca et al (2022) 10 argued that the political connection of managers and board members affect business performance, especially in the case of individuals with a large voice in decisionmaking such as executive seniors or CEOs. Board size has a negative impact on corporate financial performance, as mentioned by Bennedsen et al (2008) 8 .…”

Section: Literature Reviewmentioning

confidence: 99%

“…The studies all indicate that the fluctuations of macro factors often bring negative impacts on financial performance, in contrast, a few cases indicate that the macro factors have a positive impact on financial performance [3][4][5] . In addition, internal factors in enterprises, such as capital structure choice 1,6 , firm size 1,2,7 , board characteristics [8][9][10] or other factors that also affect corporate financial performance.…”

Section: Introductionmentioning

confidence: 99%

Macroeconomic factors and firm performance – the case in the stock

Nguyen

2023

Sci. Tech. Dev. J. - Eco. Law Manag.

View full text Add to dashboard Cite

Enterprises are an important entity in the economy and play a great role in creating jobs, carrying out production and business activities, contributing to the state budget, connecting foreign trade activities and creating development in each country. When businesses grow, it means that businesses contribute more to the national interest, therefore, countries need to create a favorable business environment to help businesses develop. Business operations are often affected by fluctuations in the macroeconomic environment in particular and government policies in general. Therefore, businesses always have to find ways to adapt to the impacts of macro factors, external shocks that may affect their business activities and from there, businesses can survive and develop. development, achieve financial benefits. The efficiency of a business is often measured by financial performance, it reflects the profit that a business can reap in business. One of the parameters that can reflect the efficiency of a business is the return on assets (ROA). The objective of the research is to evaluate the influence of macro factors on the financial performance of enterprises on the Vietnamese stock exchange in the period 2008 to 2020, using quantitative analysis method, analysis results analysis assert that: financial development has a positive effect on economic growth, which means that domestic credit poured into private enterprises often improves the financial performance. Moreover, the research results also suggest that enterprises choose to finance capital through equity, which is likely to increase the financial performance. In addition, in this research, we did not find the impact of economic growth, corporate liquidity on financial performance. It reflects that economic growth does not always bring practical effects to businesses, but economic growth needs to create qualitative changes and help businesses improve efficiency in a real way that contribute to the development of enterprises.

show abstract

“…Some argue that political connections bring a range of benefits, including bank loans, government contracts, government bailouts, avoidance of regulatory penalties, and increased firm value ( Brogaard et al, 2021 , Amore and Bennedsen, 2013 ). However, political connections also have some drawbacks, including reduced accounting quality, increased information risk, reduced cash holding value, increased insider opportunism, and harmed corporate value ( Jagolinzer et al, 2020 ); ( La Rocca et al, 2022 ); ( Saeed et al, 2016 ); ( Shleifer and Vishny, 1998 ). Existing studies usually use static research settings to test the impact of political connections, which has an endogenous problem.…”

Section: Introductionmentioning

confidence: 99%

The role of political connections in bad times: Evidence from the COVID-19 pandemic

Liu

Zhao

2023

Economics Letters

View full text Add to dashboard Cite

The relationship between political connections and firm performance: An empirical analysis in Europe

Cited by 20 publications

References 25 publications

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Macroeconomic factors and firm performance – the case in the stock

The role of political connections in bad times: Evidence from the COVID-19 pandemic

Contact Info

Product

Resources

About