Political connections and corporate diversification in emerging economies: Evidence from China

By Weiwen Li, Ai He, Hailin Lan, Daphne W. Yiu. 2012

136 citations recorded by the source corpus.

Drawing upon the resource-based view, this study examines how political connections affect corporate diversification in an emerging economy. Data from a sample of 1,280 Chinese public firms over 2002–2005 show a strong positive relationship between political connections and corporate diversification. We also find that the positive relationship between political connections and corporate diversification is moderated by the level of state ownership in firms and the level of regional institutional development. Theoretical and managerial implications are discussed.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/3ea611201ec55ad0e33296b3a7547af8ec96c804

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Citations in the corpus

Emerging multinationals from mid-range economies: the influence of institutions and factor markets (2013, background): “Government Influence Arguably, among various institutional dimensions depicted in Figure 1, the role of governments may be of paramount importance in mid-range emerging economies (Li et al., 2012; Zhou and Delios, 2012).”
Ownership of Corporations (2016, background): “Relative to growth Boyd and Solarino / Ownership of Corporations 1297 strategies, SOEs are less likely to diversify their businesses (Ramaswamy et al., 2002), unless the state has a high ownership stake in the company, or the CEO is affiliated with the government itself (Li et al., 2012).”
Ownership Structure and Firm Performance: Evidence from Vietnamese Listed Firms (2016, background): “This value is higher than those of China (43.1 percent; Li et al., 2012) and Korea (42 percent; Choi et al., 2012).”
Market–political ambidexterity during institutional transitions (2013, background): “…et al., 2011), its extension to emerging economies undergoing institutional transitions is particularly important because political and nonmarket strategies are more opaque, and thus offer potentially more attractive rewards to successful firms (Li et al., 2012; Sun et al., 2011; Xu et al., 2012).”