Aug 2026· Kyklos (Basel)· 0 citations· 34 references
Abstract
This paper analyzes the relationship between political connections and firms' financing decisions in Brazil using large datasets on campaign contributions, loans from the
Banco Nacional de Desenvolvimento Econômico e Social
(BNDES), and financial variables from Capital IQ. First, the results confirm those of previous studies showing that politically connected firms gain preferential access to finance. The present paper extends these studies by demonstrating that this access is even stronger when firms contribute to more than one party (hedging hypothesis) and are frequent contributors. Second, the present paper provides novel evidence by showing that politically connected firms issue less net equity and net debt (excluding subsidized loans from the Brazilian Development Bank, BNDES) than similar nonconnected firms, suggesting that the former firms avoid raising external resources from capital markets.
Political connections introduce significant uncertainty in emerging markets and may shape firms' risk profiles by weakening market discipline and governance mechanisms. This study examines the association between political connections and earnings volatility in the Indian context. Additionally, it examines whether...
Kumari Pushplata, Abhijeet Chandra, Akash Singh Yadav· Asian Review of Accounting· 0 citations
This study aims to examine the impact of political connections and credit risk (Non-Performing Loan/NPL) on financial performance (Return on Assets/ROA), and to analyze the comparative differences of their impacts between conventional state-owned and private banks listed on the Indonesia Stock Exchange for the 2020–202...
Azwin Lubis, Hichmaed Tachta Hinggo Suandevin, Rian Rahmat Ramadhan et al.· Dinamis : Journal of Islamic...· 1 citation
This article examines the dynamic interplay between syndicated loan and equity markets. We find that loan price changes predict stock returns up to three months ahead. The information lead is most pronounced when secondary loan market quotes are highly informative, especially for high-risk borrowers, actively monitored...
Ivo Reck· The Journal of Private Marke...· 0 citations
This study examines the effect of political connections on firms' ability to attract institutional equity capital in Malaysia.
Based on a dataset of 865 Malaysian publicly listed firms comprising 16,190 firm-year observations from 2000 to 2022, we employ an ordinary least squares (OLS) model to examine the r...
Kang-Wan Tan, M. Wong· Asian Journal of Economics a...· 0 citations
We use cookies to run the site and, with your consent, for analytics and to show ads.
See our Cookie Policy.
