IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v58y2022i14p4014-4032.html
   My bibliography  Save this article

Do Political Connections Matter for Firm Trade Credit?

Author

Listed:
  • Sohail Mansha
  • Aamir Inam Bhutta
  • Gianluca Antonucci
  • Chee-Wooi Hooy

Abstract

We examine two types of political connections on trade credit of Pakistani firms over 2009–2015; parliamentarian connections are divided into the senate, national assembly, and provincial level, while bureaucrat connections cover civil and military officers and individuals working on government committees. We documented evidence that parliamentarian connections have significant preferential access to trade credit while bureaucratic political connections decrease the firm’s access to trade credit. These findings are more pronounced in the presence of CEO political connection. Our results stay robust using alternative proxies and accounting for endogeneity and time-invariant concerns. Additional analysis reveals that politically connected firms with higher leverage and low market power use more trade credit. Moreover, low economic developed regions decrease the benefits of political connections to access trade credit.

Suggested Citation

  • Sohail Mansha & Aamir Inam Bhutta & Gianluca Antonucci & Chee-Wooi Hooy, 2022. "Do Political Connections Matter for Firm Trade Credit?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(14), pages 4014-4032, November.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:14:p:4014-4032
    DOI: 10.1080/1540496X.2022.2083497
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2022.2083497
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2022.2083497?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.

    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:58:y:2022:i:14:p:4014-4032. 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.