Political connections and organisational performance: evidence from Pakistan

Moeen Umar Cheema, Rahat Munir and Sophia Su

International Journal of Accounting & Information Management, 2016, vol. 24, issue 4, 321-338

Abstract: Purpose - This paper aims to investigate the association between political connections (PCs) and organisational performance in a South Asian country, Pakistan. Design/methodology/approach - Data were collected for 250 non-financial organisations listed on the Karachi Stock Exchange of Pakistan. Multiple linear regression analysis was used to empirically test the research question. Findings - PCs in Pakistan are common across all industries. The study found a significantly negative effect of PCs on organisational performance, measured in terms of return on assets and return on equity. In addition, negative association of PCs with organisational performance is more pronounced for organisations having connections with politicians, compared to those having connections with former government officials. Originality/value - The study extends the PCs literature by providing evidence of the impact of PCs on organisational performance in a South Asian country. Several implications for organisations, banks, accounting professionals and policy-makers are provided.

Keywords: Pakistan; Organisational performance; Political connections; Return on equity; Return on assets (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:ijaimp:v:24:y:2016:i:4:p:321-338

DOI: 10.1108/IJAIM-05-2016-0053

Access Statistics for this article

International Journal of Accounting & Information Management is currently edited by Dr Xin (Robert) Luo and Professor Han Donker

More articles in International Journal of Accounting & Information Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().