Work

Political connections, media monitoring and long-term loans

Year: 2014

Type: article

Abstract: We analyze data on Chinese non-state-listed firms and find that it is easier for firms with political connections to obtain long-term loans with extended debt maturities than it is for firms without political connections. Our investigation indicates that this phenomenon is significantly less common with increased media monitoring. Houston et al. (2011) find strong evidence that the state ownership of media is associated with higher levels of bank corruption in China, but our study shows that, to a certain extent, media monitoring can curb corruption.

Source: China Journal of Accounting Research

DOI: 10.1016/j.cjar.2014.08.004

Authors: Deming Yang, Zhengfei Lu, Danglun Luo

Institutions: Jinan University, Peking University, Sun Yat-sen University

Language: English

Topic: Political Influence and Corporate Strategies

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $1,800