Political connections and economic policy uncertainty: A global evidence

Chwee-Ming Tee and Chee-Wooi Hooy

Finance Research Letters, 2023, vol. 51, issue C

Abstract: Crony capitalism literature finds that political connections are either positively or negatively associated with various firm outcomes. However, the relationship between political connections and country level variables remains under-explored. Motivated by this gap of knowledge, our study investigates the relationship between political connections around the world and economic policy uncertainty (EPU). Our evidence suggests that the likelihood for political connections to be established is higher in countries with high EPU compared to those with low EPU. Additionally, the findings also indicate that heightened state of EPU mitigates the ability of strong institutional governance to reduce political connections.

Keywords: Political connections; Politically connected firms; Economic policy uncertainty; Institutional governance (search for similar items in EconPapers)
JEL-codes: E65 G14 G18 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322005190
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322005190

DOI: 10.1016/j.frl.2022.103340

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().