Political Connections and Business Strategy: The Impact of Types and Destinations of Political Ties on Business Diversification in Closed and Open Political Economic
AbstractThis paper studies how different types and destinations of connections between business leaders and political actors create strategic benefits in closed and open political economic systems. The analysis examines how political ties facilitate diversification by business groups in Taiwan between 1986 and 1998, before and after the country underwent extensive political and economic liberalization that led to changes in diffusion of power, tie accountability, and public scrutiny. We show that formal position interlocks with the dominant party or senior government officials provide the greatest strategic benefits in a closed political economic system, while informal social ties to a wider range of political actors provide greater strategic benefits when a political economic system becomes more open.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University in its series CEI Working Paper Series with number 2008-24.
Length: 2, 47 p.
Date of creation: Mar 2009
Date of revision:
Note: November 2, 2007
Contact details of provider:
Postal: 2-1 Naka, Kunitachi, Tokyo 186-8603
Web page: http://cei.ier.hit-u.ac.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mara Faccio, 2006. "Politically Connected Firms," American Economic Review, American Economic Association, vol. 96(1), pages 369-386, March.
- Christian Leuz & Felix Oberholzer-Gee, 2003.
"Political Relationships, Global Financing and Corporate Transparency,"
CREMA Working Paper Series
2003-03, Center for Research in Economics, Management and the Arts (CREMA).
- Christian Leuz & Felix Oberholzer-Gee, . "Political Relationships, Global Financing and Corporate Transparency," Center for Financial Institutions Working Papers 03-16, Wharton School Center for Financial Institutions, University of Pennsylvania.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reiko Suzuki).
If references are entirely missing, you can add them using this form.