Does top management team’s political connections affect the performance of a firm? A meta-analytic study of Chinese firms

Abstract

Corporate Political Connections is a universal phenomenon. But prior literature regarding the influence of political connections is double-edged. Motivated by the ample research on corporate political connections in the last two decades, we used to explore this sensation by running the Meta-Analysis on the sample studies to fill the gap in literature. The basic target of this study is to analyze the bona fide influence of political associations on firm performance. This study is contributing by extending the shreds of evidence in political connections literature. The sample of the study is 141. The Meta-Analysis is run on the sample studies which concludes that ROA, ROE and Tobin’s q have a positive and significant affiliation with PCs whereas, Ex-Gov Official is negatively related with firm’s performance. Overall, the study indicated a significant positive affiliation amid PCs and firm performance. These results provide a roadmap for future researchers.