Corporate Political Connections and Favorable Environmental Regulatory Enforcement

Wharton-SMU Research Center Corporate Transparency and Political Connections

In this paper, we study the corporate transparency choices of firms operating in a weak institutional environment. We argue that in relationship-based systems, high levels of corporate transparency and strong political connections are alternative means to create firm value. Firms can try to commit to more transparency by issuing securities abroad. However, the expanded disclosures and additiona...

Regulatory Uncertainty and Corporate Responses to Environmental Protection in China

This article analyzes the closing gap between regulation and enforcement of environmental protection in China and explores its implications for doing business there. It identifies three major dimensions that characterize change in regulatory systems: priorities and incentives, bureaucratic alignment, and transparency and monitoring. Using these dimensions, it describes the mechanisms that chara...

Political Connections and Related-Party Transactions: Evidence from Iranian Firms

The present study aims to investigate the association between political connections and related-party transactions for the firms listed on the Tehran Stock Exchange (TSE). Sample includes the 485 firm-year observations from companies listed on the Tehran Stock Exchange during the years 2013 to 2017 and research hypothesis was tested using multivariate regression model based on panel data.We fin...

Political Connections and Financial Stability

Do political connections increase bank risk-taking, or do they work as a financial safety net ex post? Using a data set of lobbying activities by US financial institutions, this paper provides empirical evidence that lobbying activities reduce banks’ risks under the presence of government bailouts. First, I uncover from an event study the fact that political connections and government bailouts ...

Globalization and Corporate Political Unity