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Politically Connected Firms in Poland and Their Access to Bank Financing

Author

Listed:
  • Hasan, Iftekhar

    (Fordham University and Bank of Finland)

  • Jackowicz, Krzysztof

    (Kozminski University)

  • Kowalewski, Oskar

    (Kozminski University and World Economic Research Institute, Warsaw School of Economics)

  • Kozlowski, Lukasz

    (BGZ SA)

Abstract

This study investigates the relationship between politically connected firms and their access to bank financing in a post-communist eras in Poland. Overall, it finds that "recent" political connections do influence access to bank financing and the value of such connections increased during the financial crisis. However, it also observes that the positive relationship mentioned above is substantially weaker in Poland relative to other emerging countries and we attribute this phenomenon to the instability of the Polish political climate.

Suggested Citation

  • Hasan, Iftekhar & Jackowicz, Krzysztof & Kowalewski, Oskar & Kozlowski, Lukasz, 2013. "Politically Connected Firms in Poland and Their Access to Bank Financing," Working Papers 13-37, University of Pennsylvania, Wharton School, Weiss Center.
    • Handle: RePEc:ecl:upafin:13-37
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    2. Panizza, Ugo & Bussolo, Maurizio & de Nicola, Francesca & Varghese, Richard, 2019. "Political Connections and Financial Constraints: Evidence from Central and Eastern Europe," CEPR Discussion Papers 14126, C.E.P.R. Discussion Papers.
    3. Chakeel PRAYAGSING & Kheswar JANKEE, 2018. "A direct measurement of corporate financial constraints of SMEs and large firms in Mauritius. A firm level survey analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(Special), pages 175-196.
    4. Christopher A. Hartwell & Anna P. Malinowska, 2018. "Firm-Level and Institutional Determinants of Corporate Capital Structure in Poland: New Evidence from the Warsaw Stock Exchange," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 68(2), pages 120-143, April.
    5. Chakeel PRAYAGSING & Kheswar JANKEE, 2018. "Political connection and allocation of capital in the corporate sector in Mauritius. A game approach (theoretical relationship)," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(Special), pages 197-208.
    6. Hasan, Iftekhar & Jackowicz, Krzysztof & Kowalewski, Oskar & Kozlowski, Lukasz, 2013. "Politically Connected Firms in Poland and Their Access to Bank Financing," Working Papers 13-37, University of Pennsylvania, Wharton School, Weiss Center.

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    More about this item

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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