Executive power and politically connected independent directors: evidence from China

Wei Wei () and Yulia Muratova ()
Additional contact information
Wei Wei: Beijing Jiaotong University
Yulia Muratova: Aarhus University

Asian Business & Management, 2022, vol. 21, issue 1, No 1, 24 pages

Abstract: Abstract Political connections have been shown to be important for firms’ survival and growth particularly in emerging economies, but our understanding of its determinants is rather limited. Drawing upon managerial power theory, we posit that executive power will be negatively associated with the percentage of politically connected independent directors (PCIDs) among all independent directors, and this effect will hold for independent directors with government background, but not for those with legislative background. In addition, we argue that state ownership will weaken the impact of executive power on the concentration of PCIDs. Using a sample of 2424 Chinese listed firms from 2004 to 2014 we find strong support for our hypotheses. Our study is the first to theoretically explain and empirically show that executive power will impact the formation of firms’ political connections.

Keywords: Political connections; Independent directors; Executive power; Corporate governance; China (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1057/s41291-020-00104-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:pal:abaman:v:21:y:2022:i:1:d:10.1057_s41291-020-00104-4

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41291

DOI: 10.1057/s41291-020-00104-4

Access Statistics for this article

Asian Business & Management is currently edited by Fabian Jintae Froese

More articles in Asian Business & Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().