Partisan political connections, ethnic tribalism, and firm performance

Tawiah, V, Zakari, A and Wang, Y ORCID: https://orcid.org/0000-0001-5438-4255, 2021. Partisan political connections, ethnic tribalism, and firm performance. Review of Quantitative Finance and Accounting. ISSN 0924-865X

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Abstract

This paper investigates the impact of partisan political connections and ethnic tribalism on firm performance in a hyper-partisan political environment. Although existing literature generally shows that political connections improve firm performance, we argue that under the theory of electoral competition, political connections can be a double-edged sword because of the tension of partisan politics. Hence, we expect that changes in government can affect firm performance. Using a unique dataset from Nigeria, we find that political connections are valuable when a firm's patron party is in power, whereas they are detrimental to firm value when their patron party is in opposition. Furthermore, we find that CEO ethnic tribal affiliation with the President improves firm performance even when the firm's patron party is in opposition. This paper extends the literature on political connections and helps managers and policymakers understand the timely use of political connections in a hyper-partisan environment.

Item Type:	Journal article
Publication Title:	Review of Quantitative Finance and Accounting
Creators:	Tawiah, V., Zakari, A. and Wang, Y.
Publisher:	Springer Science and Business Media LLC
Date:	27 November 2021
ISSN:	0924-865X
Identifiers:	Number Type 10.1007/s11156-021-01026-8 DOI 1505438 Other
Rights:	© The Author(s) 2021. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.
Divisions:	Schools > Nottingham Business School
Record created by:	Laura Ward
Date Added:	06 Jan 2022 08:46
Last Modified:	06 Jan 2022 08:46
URI:	https://irep.ntu.ac.uk/id/eprint/45170

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