Foreign political connections

Sojli, Elvira; Tham, Wing Wah

doi:10.1057/s41267-016-0059-3

Cited by 80 publications

(53 citation statements)

References 67 publications

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“…Foreign investors affect managerial behavior (Aguilera et al, 2017), and can have a political influence (Calluzzo et al, 2017). Foreign political connections positively affect firm value (Sojli & Tham, 2017). Foreign directors can positively affect firm value, particularly in countries with weak legal standards (Miletkov et al, 2017).…”

Section: Discussionmentioning

confidence: 99%

“…In this Special Issue, the papers comprise analyses of four types of international transfer of corporate governance: international M&As (Ellis et al, 2017;Renneboog et al, 2017), foreign investors (Aguilera et al, 2017;Calluzzo et al, 2017, foreign political connections (Sojli & Tham, 2017) and foreign directors (Miletkov et al, 2017).…”

Section: Mobility Of Governancementioning

confidence: 99%

“…Calluzzo et al (2017) show that sovereign wealth funds are attracted to firms that are more engaged in campaign finance, and hence can have a political influence in the target firm's country. Sojli & Tham (2017) show that foreign political connections create large increases in firm value, improve access to foreign markets, and improve access to government contracts. Foreign board members coming from countries with more advanced institutions may export good governance to a local firm operating in a relatively less advanced institutional environment, and this improvement may be stronger when institutional differences between ''exporting'' and ''importing'' countries are high (Miletkov et al, 2017).…”

Section: Mobility Of Governancementioning

confidence: 99%

“…Likewise, a local firm may import overseas governance practices by appointing foreign directors on its board or attracting foreign investors through a cross-listing on a foreign exchange. In this introduction, we focus on four related channels through which corporate governance may be internationally mobile and highlight the contributions of the papers in this Special Issue: (1) international mergers and acquisitions (Ellis, Moeller, Schlingemann, & Stulz, 2017;Renneboog, Szilagyi, & Vansteenkiste, 2017), (2) foreign ownership (Aguilera, Desender, Ló pez-Puertas, & Lee, 2017;Calluzzo, Dong, & Godsell, 2017), (3) foreign political connections (Sojli & Tham, 2017), and (4) foreign directors (Miletkov, Poulsen, & Wintoki, 2017). Overall, the recognition of corporate governance mobility presents an important opportunity for further theory building in the contest of both IB and finance research, and this is a focal point of this Special Issue.…”

Section: Introductionmentioning

confidence: 99%

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Law, finance, and the international mobility of corporate governance

et al. 2017

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We introduce the topic of this Special Issue on the ''Role of Financial and Legal Institutions in International Governance'', with a particular emphasis on a notion of ''international mobility of corporate governance''. Our discussion places the Special Issue at the intersection of law, finance, and international business, with a focus on the contexts of foreign investors and directors. Country-level legal and regulatory institutions facilitate foreign ownership, foreign directors, raising external financial capital, and international M&A activity. The interplay between the impact of foreign ownership and foreign directors on firm governance and performance depends on international differences in formal/regulatory institutions. In addition to legal conditions, informal institutions such as political connections also shape the economic value of foreign ownership and foreign directors. We highlight key papers in the literature, provide an overview of the new papers in this Special Issue, and offer suggestions for future research.

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Section: Discussionmentioning

confidence: 99%

Section: Mobility Of Governancementioning

confidence: 99%

Section: Mobility Of Governancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Law, finance, and the international mobility of corporate governance

et al. 2017

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“…The generalizability of our findings remains subject to conceptual reexaminations and empirical tests in different contexts. First, future studies can investigate how broader dimensions (e.g., historical and cultural) of institutional distance (Kirkman et al, 2017;Sojli & Tham, 2017), apart from trade openness and the ones used in the robustness tests, affect the performance of rapid export expansion. Second, subnational dimensions of institutions in destination countries should be considered and combined too when one extends the sample from exporters to MNEs.…”

Section: Limitations and Future Researchmentioning

confidence: 99%

Rapid expansion of international new ventures across institutional distance

2018

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Rapid export expansion into institutionally distant locations has become more possible in the era of digital economy. Will such rapid expansion bring desirable outcome to firms? In a context of international new ventures (INVs) from emerging markets, we reconceptualize export expansion speed as the pace of exporting across institutional distance over a certain period of time. We then examine the relationship between rapid export expansion across institutional distance and overall firm performance. We incorporate directionality into export expansion and hypothesize the relationship to be positive when INVs export upwardly to more open countries, yet the relationship to be negative when INVs export downwardly to less open countries. We also hypothesize that the degree of market liberalization in subnational regions of origin of the INVs moderates the above speed-performance relationships. Instrumental variable models based on data of Chinese indigenous INVs during 2000-2009 support these hypotheses. This study both zooms in and zooms out the analytical lens along the location-related institutional axis, examines the joint effect of institutions involved in supranational directions and subnational origins on firm performance, and advances institutional theory.

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How do emerging multinationals configure political connections across institutional contexts?

Chen

Fan

2017

Global Strategy Journal

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Research Summary Forming informal ties with political agents is viewed as a viable strategy for multinational enterprises seeking to enter emerging countries. Less is known about the conditions under which political connection is most helpful for firms dealing with cross‐border institutional distance. We discuss the distinctive mechanisms through which emerging multinationals may benefit from both home and host political connections. Based on the strategy tripod perspective, we postulate that the importance of different types of connections depends on the overall configurations of a firm’s resources and industry characteristics, and these may change with institutional distance. Our analysis of a sample of Chinese high‐tech manufacturing firms yields new insights into political connections, institutional distance, and the strategy tripod perspective. Managerial Summary Political connections play an important role in firms’ international expansion. In this study, we consider the importance of home political connections and host political connections in overcoming institutional barriers to foreign entry. We show that this importance varies, depending on firms’ resource bases and industry dynamics, and it may switch from a useful asset to a dispensable one under certain circumstances. We reach our conclusion from an analysis of Chinese high‐tech manufacturing firms’ foreign direct investment.

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Foreign political connections

Cited by 80 publications

References 67 publications

Law, finance, and the international mobility of corporate governance

Law, finance, and the international mobility of corporate governance

Rapid expansion of international new ventures across institutional distance

How do emerging multinationals configure political connections across institutional contexts?

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