 Does executives' political identity improve firm financial performance? Evidence from ChinaYongming Miao, Yaokuang Li and Zhiguang Li Pacific-Basin Finance Journal, 2024, vol. 88, issue C Abstract: Using data from Chinese A-share listed companies between 2010 and 2021, we employ natural language processing techniques and word frequency statistical analysis to investigate the influence of executives' subjective political values on firm financial performance. We draw on social identity theory and find that executives' political identity significantly enhances firm financial performance, with government subsidies and corporate compliance behavior playing intermediary roles. Furthermore, the promotional effect is more pronounced for enterprises that are geographically closer to the government, have lower marketization and are in the central and western regions. Our study contributes to the literature on the subjective political attitudes of Chinese executives and enhances the understanding of the economic consequences of such relationships. Additionally, our research offers valuable insights into corporate performance in countries without partisan conflict. Keywords: Financial performance; Political identity; Natural language processing; Textual analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:88:y:2024:i:c:s0927538x24002701 DOI: 10.1016/j.pacfin.2024.102518 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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