Political Connections and Government Subsidies of the Companies Falling into Financial Distress--Empirical Evidence from Chinese ST Listed Companies
Using the samples of ST (Special Treat) companies listed in Shanghai and Shenzhen Stock Exchange from the year 2002 to 2007, this paper empirically studies the influences of the companies political connection on how the companies falling into financial distress gains the government subsidies. The conclusions are as follows: firstly, when private companies fall into financial distress, its political connection has significant effect on the gaining of government subsidies; but it is insignificant for state-owned enterprises. Secondly, after considering the differences of regional environment the firm lying in, the paper finds that the superiority private firms hold in political connection is significantly affected by regional fiscal situation, while the functioning of the local governments intervention is also constrained by regional fiscal situation. Only when the local government has enough fiscal surplus, private enterprises can obtain more government subsidies through its political connections.
Government subsidies political connections financial distress
PAN Yue DAI Yiyi LI Caixi
School of Economics, Xiamen University, P.R.China, 361005 School of Management, 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
771-779
2009-09-01（万方平台首次上网日期，不代表论文的发表时间）