Political connections and corporate diversification in emerging economies: Evidence from China

Weiwen Li (), Ai He (), Hailin Lan () and Daphne Yiu ()

Asia Pacific Journal of Management, 2012, vol. 29, issue 3, 799-818

Abstract: Drawing upon the resource-based view, this study examines how political connections affect corporate diversification in an emerging economy. Data from a sample of 1,280 Chinese public firms over 2002–2005 show a strong positive relationship between political connections and corporate diversification. We also find that the positive relationship between political connections and corporate diversification is moderated by the level of state ownership in firms and the level of regional institutional development. Theoretical and managerial implications are discussed. Copyright Springer Science+Business Media, LLC 2012

Keywords: Corporate diversification; Resource-based view; Political connections; Emerging economy (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (47)

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DOI: 10.1007/s10490-011-9265-5

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