학회소식
[2017년 제 3차] Do Chinese Firms Need Directors with Political Connections
작성자 : 관리자
조회수 : 1029
게시일 :
2017-08-31
This study explores the effect of politically connected directors on the performance of firms in China. It further studies the impact of the networks of these directors on firm values. Based on a sample of 1,004 Chinese private firms from 2004 to 2010, the study reveals that politically connected directors with high network scores tend to have a positive influence on firm performance. However, there is a negative effect of directors with local government connections on firm performance. This is the opposite of the effect of directors who have connections with the central government. Furthermore, when a director's political connection is more central in the business network, that director tends to help to improve firm performance. This study contributes to the literature by emphasizing the effect of politics on firm performance from the perspective of corporate governance. Politics is still a touchy issue in China.
