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Political connections and corporate diversification in emerging economies: Evidence from China

Asia Pacific journal of management, 2012-09, Vol.29 (3), p.799-818 [Peer Reviewed Journal]

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Title:
Political connections and corporate diversification in emerging economies: Evidence from China
Author: Li, Weiwen ; He, Ai ; Lan, Hailin ; Yiu, Daphne
Subjects: Business and Management ; Diversification ; Diversified companies ; Economic growth ; Economic theory ; Emerging markets ; Hypotheses ; Hypothesis testing ; Labor market ; Management ; Management theory ; Political behavior ; Political economy ; Public enterprise ; Strategic management ; Studies
Is Part Of: Asia Pacific journal of management, 2012-09, Vol.29 (3), p.799-818
Description: Drawing upon the resource-based view, this study examines how political connections affect corporate diversification in an emerging economy. Data from a sample of 1,280 Chinese public firms over 2002–2005 show a strong positive relationship between political connections and corporate diversification. We also find that the positive relationship between political connections and corporate diversification is moderated by the level of state ownership in firms and the level of regional institutional development. Theoretical and managerial implications are discussed.
Publisher: Boston: Springer US
Language: English
Identifier: ISSN: 0217-4561
EISSN: 1572-9958
DOI: 10.1007/s10490-011-9265-5
Source: Alma/SFX Local Collection
ProQuest Central

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