Introduction

Carlo Bellavite Pellegrini, Laura Pellegrini () and Andrea Roncella ()
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Laura Pellegrini: University of Bergamo, Department of Management
Andrea Roncella: Catholic University of the Sacred Heart, Department of Political Economy

Chapter 1 in Governance Under Influence, 2026, pp 1-15 from Palgrave Macmillan

Abstract: Abstract The book examines the persistent and structural role of political connections in economic and corporate life from early modern Europe to the contemporary era. Historical cases—from the Medici and Fugger families to Crassus and Julius Caesar—illustrate how economic power has long been intertwined with political authority. Modern scholarship has increasingly recognized that such connections influence firm performance, market access, and institutional dynamics, particularly in contexts marked by strong political–business entanglement, as seen in recent U.S. and European developments. The test explores the historical and contemporary significance of political connections in shaping corporate performance and market structures. Drawing on examples from early modern Europe to current U.S. and European contexts, it shows that ties between economic actors and political authorities systematically influence taxation, financing, profitability, and market power. Focusing on listed firms in Italy, France, Germany, and the UK from the late 1980s to early 2010s, the authors highlights how institutional environments condition these effects. It also underscores the ethical risks associated with political–business entanglement—such as diminished transparency, inequality, and weakened democratic legitimacy—while calling for integrated approaches that combine economic analysis, political theory, and ethical evaluation. The book aims to situate political connections within a multidisciplinary framework that integrates corporate finance, political economy, and ethics, while laying the groundwork for future research at the intersection of political influence, governance, and ESG considerations.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psifcp:978-3-032-12450-0_1

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DOI: 10.1007/978-3-032-12450-0_1

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