IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-137-45463-8_6.html
   My bibliography  Save this book chapter

The Dysfunctional Response to Political Connections

In: Experiences and Challenges in the Development of the Chinese Capital Market

Author

Listed:
  • Ziqiao Yan

    (Xi’an Jiaotong University, Xi’an, PRC)

  • Wanli Li

    (Xi’an Jiaotong University, Xi’an, PRC)

  • Wei Sun

    (Xi’an Jiaotong University, Xi’an, PRC)

Abstract

Despite the fact that politically connected firms pay lower taxes and have stronger market power, a growing literature has pointed out that they exhibit a poor accounting performance compared to their non-connected counterparts (Boubakri et al., 2008; Faccio, 2010). This phenomenon is puzzling because political connections provide opportunities for enhancing firms’ operation capacity but result in poor firm performance on an accounting basis. While academic studies provide some enlightening evidence on the benefits and costs of having political connections (Claessens et al., 2008; Firth et al., 2009; Lu, 2011), the phenomenon is still far from thoroughly understood and deserves further research.

Suggested Citation

  • Ziqiao Yan & Wanli Li & Wei Sun, 2015. "The Dysfunctional Response to Political Connections," Palgrave Macmillan Books, in: Douglas Cumming & Alessandra Guariglia & Wenxuan Hou & Edward Lee (ed.), Experiences and Challenges in the Development of the Chinese Capital Market, chapter 6, pages 108-129, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-45463-8_6
    DOI: 10.1057/9781137454638_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-137-45463-8_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.