Political connections and the cost of equity capital

@article{Boubakri2012PoliticalCA,
  title={Political connections and the cost of equity capital},
  author={Narjess Boubakri and Omrane Guedhami and Dev Raj Mishra and Walid Saffar},
  journal={Scopus},
  year={2012}
}
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449 Citations
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References

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THE IMPACT OF POLITICAL CONNECTIONS ON FIRMS’ OPERATING PERFORMANCE AND FINANCING DECISIONS
We investigate the impact that the political connections of publicly traded firms have on their performance and financing decisions. Using a long-term event study covering a sample of 234 politically…
Political Relationships, Global Financing and Corporate Transparency: Evidence from Indonesia
This study examines the role of political connections for firms' financing strategies and their long-run financial performance. We view political connections as an example for domestic arrangements…
Political Connections and Corporate Bailouts
We analyze the likelihood of government bailouts of 450 politically connected firms from 35 countries during 1997‐2002. Politically connected firms are significantly more likely to be bailed out than…
Political connections of newly privatized firms
Do Lenders Favor Politically Connected Firms? Rent Provision in an Emerging Financial Market
Corruption by the politically connected is often blamed for economic ills, particularly in less developed economies. Using a loan-level data set of more than 90,000 firms that represents the universe…
Globalization of Equity Markets and the Cost of Capital
This paper examines the impact of globalization on the cost of equity capital. We argue that the cost of equity capital decreases because of globalization for two important reasons. First, the…
Legal Protection of Investors, Corporate Governance, and the Cost of Equity Capital
High-level politically connected firms, corruption, and analyst forecast accuracy around the world
The international business (IB) literature has widely recognized political forces as major factors that complicate the strategic decisions of multinational enterprises (MNEs). Analyses by financial…
International Differences in the Cost of Equity Capital: Do Legal Institutions and Securities Regulation Matter?
This paper examines international differences in firms' cost of equity capital across 40 countries. We analyze whether the effectiveness of a country's legal institutions and securities regulation is…
The Quality of Accounting Information in Politically Connected Firms
We document that the quality of earnings reported by politically connected firms is significantly poorer than that of similar non-connected companies. Our results are not due to firms with ex-ante…
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