Politically motivated corporate decisions as tournament participation/inclusion games

Feldman, David; Kang, Chang-Mo; Li, Jiaming; Saxena, Konark

doi:10.1016/j.jcorpfin.2021.101883

Cited by 15 publications

(3 citation statements)

References 29 publications

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“…Our paper joins a rapidly growing literature that examines corporate political activities and ideology (Feldman, Kang, Li and Saxena, 2021;Gupta, Briscoe and Hambrick, 2017;Gupta, Fung and Murphy, 2021;Halford & Li, 2019;Hutton, Danling and Kumar, 2015;Kim, Ryou and Yang, 2020;Park, Boeker and Gomulya, 2020;Wong & Hooy, 2018). Prior studies have examined political ideology of firms (Gupta et al, 2017;Hutton et al, 2015), boards (Goldman, Rocholl and So, 2013;Park et al, 2020;Sun, Hu and Hillman, 2016), and CEOs (Hadani & Schuler, 2013;Han, 2019;Babenko et al, 2020;Gupta et al, 2021), as well as the impacts of political connections and activities on firm performance.…”

Section: Introductionmentioning

confidence: 87%

“…It indicates that the effect of political connection is important only in a stable connection. In a relevant strand, Feldman et al (2021) document a reversed effect of politician's campaign on firm's investment decision-making. The authors introduce political tournament "participation/inclusion" games among competitors for political promotion in China's Congress elections.…”

Section: Literature Reviewmentioning

confidence: 99%

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Do Shareholder Views Affect Corporate Political Activities?

Hoepner

Lin

2021

SSRN Journal

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Section: Introductionmentioning

confidence: 87%

Section: Literature Reviewmentioning

confidence: 99%

Do Shareholder Views Affect Corporate Political Activities?

Hoepner

Lin

2021

SSRN Journal

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“…However, the party branch is directly embedded in the internal organization and governance structure of the company and intervents in a more direct way. Although China's political system is based on "partygovernment unity, " from the perspective of the "administrativepolitical" dichotomy, due to the principal-agent relationship and institutional inertia, the government and state-owned shareholders may also produce strategic administrative phenomena like "political tournaments" at the local grassroots level and at the individual enterprise level, deviating from the wishes of political parties (Feldman et al, 2021). Additionally, due to the special institutional environment in China, companies sometimes give up some economic benefits in order to obtain other resources.…”

Section: Introductionmentioning

confidence: 99%

Party branches, policy perception and corporate social responsibility: Evidence from Chinese private enterprises

Yao

Zhang

2023

Front. Psychol.

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IntroductionParty branches embedded in private enterprises are a unique phenomenon in the Chinese economy, but few studies have focused on the economic consequences. We hope to explore the impact of party branches on small and medium-sized private enterprises’ corporate social responsibility (CSR) in China in order to fill the gaps in current research.MethodsData were used from the 11th Chinese Private Enterprise Survey (CPES) in 2014. The study uses the methodology of fixed effect model, mediation analysis and moderation analysis. Moreover, propensity score matching and Heckman two-step method deal with the endogeneity problem and check the robustness of the results.ResultsWe find that, first, the embedding of party branches will improve the CSR performance of private enterprises in various dimensions by enhancing the perception of private enterprises in policy; second, in various influence pathways, the party branches will enhance the perceptions of policy related to economic interests, which has a more significant impact on enhancing the performance of philanthropic CSR. Further research reveals that business owners’ first-given and later-generated political connections support the party branches’ perception of policies related to economic and social interests, respectively.DiscussionThe findings suggest that political intervention by China’s ruling party in private firms promotes CSR performance, but this is influenced by the political connections of the firm owners. In addition to providing empirical support for the study of corporate behavior in the Chinese context, this paper identifies the impact and development trajectory of the party branches of China’s ruling party on CSR. However, this paper does not discuss the implicit costs required for party branches to promote CSR, and we hope that future research will make further explorations.

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The safeguard mode of green development in China

Li,

Song

et al. 2024

Environ Dev Sustain

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Politically motivated corporate decisions as tournament participation/inclusion games

Cited by 15 publications

References 29 publications

Do Shareholder Views Affect Corporate Political Activities?

Do Shareholder Views Affect Corporate Political Activities?

Party branches, policy perception and corporate social responsibility: Evidence from Chinese private enterprises

The safeguard mode of green development in China

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