Political connections leads to better performance.
Boubakri, Cosset and Saffar (JFR 2012); Johnson and Mitton (JFE 2003); Li et al. (JDE 2008); Su and He (JBE 2010)
9
Measuring PC in Other Studies
A multifaceted construct that includes vertical connections with governments, industrial departments, and other regulatory authorities such as taxation bureaus, banks, and commercial administration bureaus.
11
Other Variables
ห้องสมุดไป่ตู้
Long-Term Loan, Short-term Loan, Total Loan, Liability Return on Asset (ROA) LogSales, LogAsset, Expense, LogEmployee, Cash, Dividend Asset Collateral Value is net property, plant, and equipment divided by total asset. Tobin’s q is the book value of assets minus the book value of common equity plus the market value of common equity divided by total asset. SOE is a dummy variable that equals one if the Chinese government is the controlling shareholder of the firm and zero otherwise. Board Size , Independent Director Except for PC, SOE, and Dividend, we winsorize all other variables at the 2nd and 98th percentiles.
