Volume 30, Issue 2, 2021
DOI: 10.24205/03276716.2020.4089
CEO POLITICAL CONNECTION, GOVERNANCE MECHANISMS, AND FIRM PERFORMANCE
Abstract
The purpose of this article is to examine the effect of chief executive officer (CEO) political connection on the performance of Chinese private enterprises from 2007 to 2015. Additionally, the study explores the moderating impact of majority shareholder ownership and market capitalization levels on the link between CEO political connection and business success. The study's findings indicate that CEO political connection positively affect corporate success. The moderating effects test on governance structures suggests that the majority shareholder ownership ratio enhances the association between CEO political connection and business performance. Simultaneously, the extent of marketization reduces the impact of CEO political connection on corporate performance.
Keywords
CEO political connection; shareholding proportion; majority shareholders; marketization level; enterprise performance