Economics at your fingertips  

Political connections of the board of directors and credit financing: evidence from Chinese private enterprises

Hongfeng Peng, Xiao Zhang and Xiaoquan Zhu

Accounting and Finance, 2017, vol. 57, issue 5, 1481-1516

Abstract: This study explores whether the political connections of the board of directors facilitate credit financing. It addresses the gap concerning the discussion of the substitution or complementary effect on financing terms between political connections and government regulation in China. Using a data set covering 1340 private listed firms, we classify all members on the board of directors into subgroups and show that it is the political connections of nonexecutive directors, rather than executive directors that play an important role in obtaining long‐term credit loans. Moreover, the convenience of obtaining financing is mainly derived from the political connections of official independent directors.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)

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:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2019-02-23
Handle: RePEc:bla:acctfi:v:57:y:2017:i:5:p:1481-1516