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The impact of political connection and board diversity on company performance: Evidence from China

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  • Lien‐Wen Liang
  • Tsui‐Jung Lin
  • Hui‐Fun Yu
  • Ya‐Wen Li

Abstract

This paper examines the impact of political connection and board diversity on company performance. The sample is composed of information on Chinese‐listed companies from 2008 to 2016. We find a significantly negative correlation between political connection and company performance. Board diversity also has a significantly negative impact on company performance. However, when the impact of the interaction between political connection and board diversity is taken into consideration, we find that it can increase the performance of the firm. Our results imply that political connectedness and board diversity together play a valuable role in a firm's performance.

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  • Lien‐Wen Liang & Tsui‐Jung Lin & Hui‐Fun Yu & Ya‐Wen Li, 2022. "The impact of political connection and board diversity on company performance: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2347-2357, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:2347-2357
    DOI: 10.1002/mde.3529
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