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- Publisher
- Wiley
- Copyright
- Accounting and Finance © 2019 AFAANZ
- ISSN
- 0810-5391
- eISSN
- 1467-629X
- DOI
- 10.1111/acfi.12582
- Publisher site
- See Article on Publisher Site
Abstract
In this paper, we find that China’s anti‐corruption campaign since 2012 significantly reduces the value of political connections for non‐state‐owned enterprises (non‐SOEs). We provide evidence showing that the decline of the value of political connections for non‐SOEs is attributed mainly to the decreasing return from political connections, instead of increasing political risk. We further find that the decreasing return of the politically connected firms is driven mainly by the disappearance of the ‘resource effect’ of political connection in facilitating access to bank credit and government subsidies, but not due to the increasing cost of maintaining political connections.
Journal
Accounting & Finance – Wiley
Published: Dec 1, 2019
Keywords: ; ; ; ; ; ;