The Impact of Political Involvement on Firms’ Financial Performance

Ruba Khalid Shira
Additional contact information
Ruba Khalid Shira: Department of Finance, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, Saudi Arabia

International Journal of Economics and Financial Issues, 2024, vol. 14, issue 3, 33-39

Abstract: Political involvement helps businesses to obtain key government resources and support. Political involvement assists businesses to take actions that reduce uncertainty, provide shield and environmental dependence from the environmental threats that can directly impact their performance. This study aims to investigate the impact of political involvement on banks’ sustainable performance in selected South Asian economies (Pakistan, Bangladesh, India, and Sri Lanka). The data is collected from DataStream for the period of 2013-2022. The Generalized Method of Moments (GMM) is employed to analyze the results. The study finds that political involvement negatively affects the firm’s sustainable performance. This study is helpful for management of the organizations and shareholders to increase firm performance by reducing political involvement.

Keywords: Political Involvement; Firm Performance; Financial Leverage; Banking Sector; South Asian Economies (search for similar items in EconPapers)
JEL-codes: G30 G32 G34 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/16021/7879 (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/16021 (text/html)

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:eco:journ1:2024-03-4

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().