Publication Type
Journal Article
Version
publishedVersion
Publication Date
9-2012
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.
Keywords
Corporate diversification; Resource-based view; Political connections; Emerging economy
Discipline
Business and Corporate Communications | Corporate Finance
Research Areas
Strategy and Organisation
Publication
Asia Pacific Journal of Management
Volume
29
Issue
3
First Page
799
Last Page
818
ISSN
0217-4561
Identifier
10.1007/s10490-011-9265-5
Publisher
Springer
Citation
LI, Weiwen; HE, Ai; LAN, Hailin; and YIU, Daphne W..
Political connections and corporate diversification in emerging economies: Evidence from China. (2012). Asia Pacific Journal of Management. 29, (3), 799-818.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7323
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1007/s10490-011-9265-5