The Impact of Executives’ Background on the Financial Constraints: Perspective from Political Connection and Financial Connection
Available Online August 2013.
- https://doi.org/10.2991/icemss.2013.38How to use a DOI?
- politicalconnection, financial connection, degree of marketization, financial constraints
- Based on statistics of A-share enterprises in the period of 2007 to 2010, our literature mainly discuss the impact of executives’ political and financial connection on the financial constraints of the firms with different properties of ownership and in locations with different degree of marketization. Our study vindicates that private enterprises located in areas with low degree of marketization, executives with financial connections can alleviate the financial constraints. However, in areas with high degree of marketization executives with political connections can alleviate the financial constraints. Furthermore, in state-owned enterprises, executives with political connections can alleviate the financial constraints. Therefore, our study contributes to existing literatures regarding executive background and financial constraints. And we also provide instructions for firms that want to moderate financial constraints by recruiting new executives.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Mingjing Yang PY - 2013/08 DA - 2013/08 TI - The Impact of Executives’ Background on the Financial Constraints: Perspective from Political Connection and Financial Connection BT - Proceedings of the 2013 International Conference on Education, Management and Social Science (ICEMSS-13) PB - Atlantis Press SP - 141 EP - 145 SN - 1951-6851 UR - https://doi.org/10.2991/icemss.2013.38 DO - https://doi.org/10.2991/icemss.2013.38 ID - Yang2013/08 ER -