Politically – connected firms : Can they squeeze the State ?

@inproceedings{Faccio2002PoliticallyC,
  title={Politically – connected firms : Can they squeeze the State ?},
  author={M C S R Faccio},
  year={2002}
}
For a sample of 42 countries, I examine firms whose controlling shareholders and top managers are members of national parliaments or governments. I find that this overlap is quite widespread, especially in highly corrupted countries. Connected companies enjoy easier access to debt financing, lower taxation, and stronger market power. These benefits increase when companies are connected through their owner, with a minister, or a seasoned politician. Furthermore, these benefits are generally… CONTINUE READING
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