This paper examines whether political connections ease financial constraints faced by firms. Using firm-level data from six Central and Eastern European economies, the paper shows that politically connected firms: (i) have high levels of leverage, (ii) have low levels of profitability, (iii) are less capitalized, (iv) have low marginal productivity of capital, and (v) do not invest more than unconnected firms. Next, the paper shows that connected...
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详细
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2019/08/06
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政策研究报告
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WPS8956
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1
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1
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2019/08/06
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Disclosed
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Political Connections and Financial Constraints : Evidence from Transition Countries
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political connections