Lobbying and political expenses: Complements or substitutes?

Romero, Jorge A.

doi:10.1016/j.jbusres.2022.05.028

Cited by 3 publications

(1 citation statement)

References 55 publications

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“…There are many corporate rent-seeking activities, including corporate political lobbying, political contributions, or other forms of political participation, such as voluntary donations, active influence through their networks, and information [4]. Rent-seeking behavior manifests primarily as a political expenditure activity that requires management costs [5]. Therefore, this paper focuses on the rent-seeking behaviors that are most likely to generate excess overhead.…”

Section: Introductionmentioning

confidence: 99%

Does Digitalization Strategy Affect Corporate Rent-Seeking? Evidence from Chinese-Listed Firms

Yu,

Liu

2024

Systems

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The issue of corporate rent-seeking, which stems from the misuse of authority, remains a critical concern for the international community. Drawing on agency theory and resource dependence theory, this study explores the relationship between corporate digitalization strategies (DSs) and corporate rent-seeking. We test our theoretical hypotheses by utilizing panel data encompassing Chinese A-share listed companies from 2004 to 2021. Our findings suggest that corporate DSs have a significant negative influence on rent-seeking. Several robustness tests support this conclusion. Moreover, our analysis indicates that a DS is particularly effective in curtailing rent-seeking behaviors within state-owned enterprises (SOEs) compared with their non-state-owned counterparts. However, contrary to our hypothesis, a DS is less effective in suppressing corporate rent-seeking among firms where the executive team has legal backgrounds. These findings suggest that top managers, especially within SOEs, should prioritize the early formulation of digital transformation strategies to reduce rent-seeking behavior. Additionally, when implementing digital transformation, firms should carefully integrate members with legal backgrounds into their executive teams and strengthen ethical education and supervision for executives with legal expertise.

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Section: Introductionmentioning

confidence: 99%