Political connections and firm performance: Further evidence using a generalised quantile regression approach
We investigate the relationship between political connectedness and firm performance employing the generalised quantile regression (GQR) method. We analysed the annual data of 190 Pakistani firms (including politically connected and non-politically connected firms) that were listed on the Pakistan S...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2021-09-01
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| Series: | IIMB Management Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S0970389621000641 |
| _version_ | 1818345168110092288 |
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| author | Faisal Shahzad Asif Saeed Ghazanfar Ali Asim Fiza Qureshi Ijaz Ur Rehman Saba Qureshi |
| author_facet | Faisal Shahzad Asif Saeed Ghazanfar Ali Asim Fiza Qureshi Ijaz Ur Rehman Saba Qureshi |
| author_sort | Faisal Shahzad |
| collection | DOAJ |
| description | We investigate the relationship between political connectedness and firm performance employing the generalised quantile regression (GQR) method. We analysed the annual data of 190 Pakistani firms (including politically connected and non-politically connected firms) that were listed on the Pakistan Stock Exchange from 2007 to 2014. The analysis reveals that the political connections of the board directors impact firm performance negatively in different performance distributions. When compared to high-performing firms, the magnitude of impact of political connectedness is considerably higher in the case of low-performing firms. Overall, there is a negative correlation between political connectedness and performance after we account for the endogenous selection of the political connections in the board. |
| first_indexed | 2024-12-13T16:58:05Z |
| format | Article |
| id | doaj.art-b746d1b73bf14710a5b2748b7e60907c |
| institution | Directory Open Access Journal |
| issn | 0970-3896 |
| language | English |
| last_indexed | 2024-12-13T16:58:05Z |
| publishDate | 2021-09-01 |
| publisher | Elsevier |
| record_format | Article |
| series | IIMB Management Review |
| spelling | doaj.art-b746d1b73bf14710a5b2748b7e60907c2022-12-21T23:37:52ZengElsevierIIMB Management Review0970-38962021-09-01333205213Political connections and firm performance: Further evidence using a generalised quantile regression approachFaisal Shahzad0Asif Saeed1Ghazanfar Ali Asim2Fiza Qureshi3Ijaz Ur Rehman4Saba Qureshi5COMSATS University Islamabad, Attock Campus, Attock, PakistanCOMSATS University Islamabad, Attock Campus, Attock, PakistanCOMSATS University Islamabad, Attock Campus, Attock, PakistanInstitute of Business Administration, University of Sindh, Jamshoro, Sindh, PakistanAl Falah University, United Arab Emirates; Corresponding authorInstitute of Business Administration, University of Sindh, Jamshoro, Sindh, PakistanWe investigate the relationship between political connectedness and firm performance employing the generalised quantile regression (GQR) method. We analysed the annual data of 190 Pakistani firms (including politically connected and non-politically connected firms) that were listed on the Pakistan Stock Exchange from 2007 to 2014. The analysis reveals that the political connections of the board directors impact firm performance negatively in different performance distributions. When compared to high-performing firms, the magnitude of impact of political connectedness is considerably higher in the case of low-performing firms. Overall, there is a negative correlation between political connectedness and performance after we account for the endogenous selection of the political connections in the board.http://www.sciencedirect.com/science/article/pii/S0970389621000641Politically connected firmsFirm performanceGeneralised quantile regression |
| spellingShingle | Faisal Shahzad Asif Saeed Ghazanfar Ali Asim Fiza Qureshi Ijaz Ur Rehman Saba Qureshi Political connections and firm performance: Further evidence using a generalised quantile regression approach IIMB Management Review Politically connected firms Firm performance Generalised quantile regression |
| title | Political connections and firm performance: Further evidence using a generalised quantile regression approach |
| title_full | Political connections and firm performance: Further evidence using a generalised quantile regression approach |
| title_fullStr | Political connections and firm performance: Further evidence using a generalised quantile regression approach |
| title_full_unstemmed | Political connections and firm performance: Further evidence using a generalised quantile regression approach |
| title_short | Political connections and firm performance: Further evidence using a generalised quantile regression approach |
| title_sort | political connections and firm performance further evidence using a generalised quantile regression approach |
| topic | Politically connected firms Firm performance Generalised quantile regression |
| url | http://www.sciencedirect.com/science/article/pii/S0970389621000641 |
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