Political and government connections on corporate boards in Australia: Good for business?

Australian Journal of Management

Volumn 41, Issue 1, 2016, Pages 3-26

  Gray, Stephen ^a   Harymawan, Iman ^b   Nowland, John ^b  

^a UNIVERSITY OF QUEENSLAND   (Australia)

^b CITY UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

D72; G14; G34

Indexed keywords

EID: 84992885989     PISSN: 03128962     EISSN: 13272020     Source Type: Journal    
DOI: 10.1177/0312896214535788     Document Type: Article

References (56)

1. Adams R Gray S Nowland J (2011) Does gender matter in the boardroom? Evidence from the market reaction to mandatory new director announcements. SSRN working paper.
2. Agrawal A Knoeber C (2001) Do some outside directors play a political role? Journal of Law & Economics 44: 179-198.
3. Aldamen H Duncan K Kelly S, et al. (2012) Audit committee characteristics and firm performance during the global financial crisis. Accounting and Finance 52: 971-1000.
4. Amore M Bennedsen M (2013) The value of local political connections in a low-corruption environment. Journal of Financial Economics 110: 387-402.
5. ASX Corporate Governance Council (2010) Corporate Governance Principles and Recommendations with 2010 Amendments. Sydney, NSW, Australia: ASX Corporate Governance Council.
6. Backman M (2001) Asian Eclipse: Exposing the Dark Side of Business in Asia. Revised edition. Singapore: John Wiley & Sons.
7. Balatbat M Taylor S Walter T (2004) Corporate governance, insider ownership and operating performance of Australian initial public offerings. Accounting and Finance 44: 299-328.
8. Blau B Brough T Thomas D (2013) Corporate lobbying, political connections and the bailout of banks. Journal of Banking & Finance 37: 3007-3017.
9. Boubakri N Guedhami O Mishra D, et al. (2012) Political connections and the cost of equity. Journal of Corporate Finance 18: 541-559.
10. Chapple L Humphrey J (2013) Does board gender diversity have a financial impact? Evidence using stock portfolio performance. Journal of Business Ethics. Epub ahead of print July 2013. DOI: 10.1007/s10551-013-1785-0.
11. Chen C Ding Y Kim C (2010) High-level politically-connected firms, corruption and analyst forecast accuracy around the world. Journal of International Business Studies 41: 1505-1524.
12. Chen C Li Z Su X, et al. (2011) Rent-seeking incentives, corporate political connections and the control structure of private firms: Chinese evidence. Journal of Corporate Finance 17: 229-243.
13. Christensen J Kent P Stewart J (2010) Corporate governance and company performance in Australia. Australian Accounting Review 20: 372-386.
14. Claessens S Feijen E Laeven L (2008) Political connections and preferential access to finance: The role of campaign contributions. Journal of Financial Economics 88: 554-580.
15. Cooper M Gulen H Ovtchinnikov A (2010) Corporate political contributions and stock returns. Journal of Finance 65: 687-724.
16. Cotter J Silvester M (2003) Board and monitoring committee independence. Abacus 39: 211-232.
17. Cull R Xu LC (2005) Institutions, ownership, and finance: The determinants of profit reinvestment among Chinese firms. Journal of Financial Economics 77: 117-146.
18. DeFond M Hann R Hu X (2005) Does the market value financial expertise on audit committees of boards of directors? Journal of Accounting Research 43: 153-193.
19. Dodd P Warner J (1983) On corporate governance: A study of proxy contests. Journal of Financial Economics 11: 401-438.
20. Faccio M (2006) Politically connected firms. American Economic Review 96: 369-386.
21. Faccio M (2010) Differences between politically connected and nonconnected firms: A cross-country analysis. Financial Management 39: 905-928.
22. Faccio M Masulis R McConnell J (2006) Political connections and corporate bailouts. Journal of Finance 61: 2597-2635.
23. Fan J Wong TJ Zhang T (2007) Politically connected CEOs, corporate governance and post-IPO performance of China's newly privatized firms. Journal of Financial Economics 84: 330-357.
24. Ferris S Jagannathan M Pritchard A (2003) Too busy to mind the business? Monitoring by directors with multiple board appointments. Journal of Finance 58: 1087-1111.
25. Fich E (2005) Are some outside directors better than others? Evidence from director appointments by Fortune 1000 firms. Journal of Business 78: 1943-1971.
26. Fich E Shivdasani A (2006) Are busy boards effective monitors? Journal of Finance 61: 689-724.
27. Fisman D Fisman R Galef J, et al. (2006) Estimating the value of connections to vice-president Cheney. SSRN working paper.
28. Fisman R (2001) Estimating the value of political connections. American Economic Review 91: 1095-1102.
29. Goldman E Rocholl J So J (2009) Do politically connected boards affect firm value? Review of Financial Studies 22: 2331-2360.
30. Goldman E So J Rocholl J (2011) Politically connected boards of directors and the allocation of procurement contracts. SSRN working paper.
31. Gray S Nowland J (2013) Is prior director experience valuable? Accounting and Finance 53: 643-666.
32. Hillman A (2005) Politicians on the board of directors: Do connections affect the bottom line? Journal of Management 31: 464-481.
33. Hoque MZ Islam MR Azam MN (2013) Board committee meetings and firm financial performance: An investigation of Australian companies. International Review of Finance 13: 503-528.
34. Houston J Jiang L Lin C, et al. (2012) 0 Political connections and the cost of bank loans. SSRN working paper.
35. Johnson S Mitton T (2003) Cronyism and capital controls: Evidence from Malaysia. Journal of Financial Economics 67: 351-382.
36. Karpoff J Lee D Vendrzyk V (1999) Defense procurement fraud and contractor influence. Journal of Political Economy 107: 809-842.
37. Khwaja A Mian A (2005) Do lenders favor politically connected firms? Rent provision in an emerging financial market. Quarterly Journal of Economics 120: 1371-1411.
38. Kiel G Nicholson G (2006) Multiple directorships and corporate performance in Australian listed companies. Corporate Governance: An International Review 14: 530-546.
39. Kim C Pantzalis C Park J (2012) Political geography and stock returns: The value and risk implications of proximity to political power. Journal of Financial Economics 106: 196-228.
40. Kim C Yang Z Zhou O (2013) Politically connected boards and audit pricing. SSRN working paper.
41. Lee KW Lee CF (2012) Are multiple directorships beneficial in East Asia? Accounting and Finance. Epub ahead of print December 2012. DOI: 10.1111/acfi.12008.
42. Leuz C Oberholzer-Gee F (2006) Political relationships, global financing, and corporate transparency: Evidence from Indonesia. Journal of Financial Economics 81: 411-439.
43. Ma L Ma S Tian G (2013) Political connections, founder-managers and their impact on tunnelling in China's listed firms. Pacific-Basin Finance Journal 24: 312-339.
44. Mathur I Singh M (2010) Corporate political strategies. Accounting and Finance 51: 252-277.
45. Min BS Verhoeven P (2013) Outsider board activity, ownership structure and firm value: Evidence from Korea. International Review of Finance 13: 187-214.
46. Mitchell H Joseph S (2010) Changes in Malaysia: Capital controls, prime ministers and political connections. Pacific-Basin Finance Journal 18: 460-476.
47. Niessen A Ruenzi S (2009) Political connectedness and firm performance: Evidence from Germany. German Economic Review 11: 441-464.
48. Rosenstein S Wyatt J (1990) Outside directors, board independence, and shareholder wealth. Journal of Financial Economics 26: 175-191.
49. Shivdasani A Yermack D (1999) CEO involvement in the selection of new board members: An empirical analysis. Journal of Finance 54: 1829-1853.
50. Shleifer A Vishny R (1994) Politicians and firms. Quarterly Journal of Economics 46: 995-1025.
51. Sidhu B Whittred G (2003) The role of political costs in deferred tax policy choice. Australian Journal of Management 28: 63-82.
52. Swan P Honeine S (2011) Is company performance dependent on outside director ‘skin in the game’? SSRN working paper.
53. Wang Y Oliver J (2009) Board composition and firm performance variance: Australian evidence. Accounting Research Journal 22: 196-212.
54. Woidtke T Yeh YH (2013) The role of the audit committee and the informativeness of accounting earnings in East Asia. Pacific-Basin Finance Journal 23: 1-24.
55. Yeh YH Woidtke T (2005) Commitment or entrenchment? Controlling shareholders and board composition. Journal of Banking and Finance 29: 1857-1885.
56. Yeh YH Shu PG Chiu SB (2013) Political connections, corporate governance and preferential bank loans. Pacific-Basin Finance Journal 21: 1079-1101.