IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v58y2022i7p1898-1912.html
   My bibliography  Save this article

Military Political Connection and Firm Value—Empirical Evidence from a Natural Experiment in Thailand

Author

Listed:
  • Jingjing Tang
  • Haijian Zeng
  • Fangying Pang
  • Lanke Huang

Abstract

This paper uses the exogenous shock- Thailand military coup on May 22, 2014-as a natural experiment to test the impact of military political connections on the value of Thai’s listed firms. Results show that the military coup will bring significant benefits to the share price of listed firms with military political connections. Moreover, the DID estimations show that the military rule can significantly increase the Tobin’s Q of military political affiliates after the military coup. The main influential mechanism is that, after the military is in power, the listed firms will hire personnel with military background to enter the management. This move will bring long-term financing convenience to the military politically connected firms and enable them to use more funds to capital investment and R & D activities.

Suggested Citation

  • Jingjing Tang & Haijian Zeng & Fangying Pang & Lanke Huang, 2022. "Military Political Connection and Firm Value—Empirical Evidence from a Natural Experiment in Thailand," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(7), pages 1898-1912, May.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:1898-1912
    DOI: 10.1080/1540496X.2021.1944852
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2021.1944852
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2021.1944852?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:7:p:1898-1912. 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.