Does Political Connection Affect the Effectiveness of Corporate Governance?--Evidence from Distressed Listed Firms in China
Starting from top management turnover, this paper examines the relationship between political connection and the effectiveness of corporate governance from a brand new perspective. Based on an empirical evidence of top management turnover — involving 842 managers in 388 Chinese ST (special treatment) firms from 1998 to 2008, we find that political connection is inversely proportional to the possibility of top management turnover for poor performance, which indicates that political resources of the top managers post entrenchment effect on the managers and aggravate the intervention of government, and finally curb the effectiveness of corporate governance.
Political Connection Top Management Turnover Corporate Governance
YOU Jiaxing DU Guqian CHEN Shumin
Department of Planning and Statistics, School of Economics, Xiamen University, P.R.China, 361005
国际会议
The 5th International Sympsium for Corporate Governance(第五届公司治理国际研讨会)
天津
英文
1350-1356
2009-09-01（万方平台首次上网日期，不代表论文的发表时间）