The role of political connections in bad times: Evidence from the COVID-19 pandemic

Hengxu Liu and Wenxi Zhao

Economics Letters, 2023, vol. 224, issue C

Abstract: This study investigates the relationship between political connections and firm financial performance during the COVID-19 pandemic. Using a difference-in-differences methodology, we found that politically connected enterprises paid more taxes, employed more employees, and suffered financial performance. This study enriches the literature on the impact of COVID-19 on enterprises and provides suggestions for regulators.

Keywords: COVID-19; Political connections; Corporate governance; Firm financial performance (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:224:y:2023:i:c:s0165176523000241

DOI: 10.1016/j.econlet.2023.110999

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