IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v51y2015i1p234-246.html
   My bibliography  Save this article

Political Connections and Corporate Diversification: An Exploration of Chinese Firms

Author

Listed:
  • Min Zhang
  • Jun Su
  • Yuefan Sun
  • Wen Zhang
  • Na Shen

Abstract

In this study, we explore the relationship between political connections and corporate diversification in China. We find that the diversification level of politically connected firms is significantly higher than that of non-politically connected firms. We further find that the relationship is stronger in non-state-owned enterprises and in areas in which government intervention is greater. This study enriches the corporate diversification literature by highlighting political connections as an important driver of corporate diversification in emerging markets. It also furthers our understanding of the institutional environment as a moderator of the relationship between political connections and firm diversification.

Suggested Citation

  • Min Zhang & Jun Su & Yuefan Sun & Wen Zhang & Na Shen, 2015. "Political Connections and Corporate Diversification: An Exploration of Chinese Firms," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(1), pages 234-246, January.
    • Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:234-246
    DOI: 10.1080/1540496X.2015.1012400
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2015.1012400
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2015.1012400?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Xiao-Lin & Li, Jingya & Wang, Jia & Si, Deng-Kui, 2021. "Trade policy uncertainty, political connection and government subsidy: Evidence from Chinese energy firms," Energy Economics, Elsevier, vol. 99(C).
    2. Askarany, Davood & Spraakman, Gary, 2020. "Regional diversification and financial performance through an excess-capacity theory lens: A new explanation for mixed results," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    3. Changzheng Zhang & Jiao Zhang & Qian Guo, 2018. "Can Political Connections Of Independent Directors Improve Firm Perfomance? Evidence Of Chinese Listed Manufacturing Companies Over 2008 - 2013," Malaysian E Commerce Journal (MECJ), Zibeline International Publishing, vol. 2(2), pages 5-12, January.
    4. Sumon Kumar Bhaumik & Ali M. Kutan & Sudipa Majumdar, 2018. "How successful are banking sector reforms in emerging market economies? Evidence from impact of monetary policy on levels and structures of firm debt in India," The European Journal of Finance, Taylor & Francis Journals, vol. 24(12), pages 1047-1062, August.
    5. Jakob Arnoldi & Yulia Muratova, 2019. "Unrelated acquisitions in China: The role of political ownership and political connections," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 113-134, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:234-246. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.