Perks, political networks and institutional environment
by Wei Zhou; Dan Yang; Yude Xu; Huilin Zhu
International Journal of Internet and Enterprise Management (IJIEM), Vol. 7, No. 4, 2011

Abstract: Collecting the data from the listed companies in China from 2005 to 2007, this study examined the impacts of the executives' political networks on business operations, and reveals that under the transition economics system, perks reflect the business damage because of the lack of institutional arrangements. This study found that the political networks in the state-owned companies brought a larger scale of on-the-job expenditure compared with the private companies. We also found that promoting the market reform and accelerating the institutional environment construction could inhibit the demand of political networks, and improve the enterprise performance.

Online publication date: Sat, 25-Apr-2015

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