TY - JOUR
T1 - Political connections and organisational performance
T2 - evidence from Pakistan
AU - Cheema, Moeen Umar
AU - Munir, Rahat
AU - Su, Sophia
PY - 2016
Y1 - 2016
N2 - Purpose - This paper aims to investigate the association between political connections (PCs) and organisational performance in a South Asian country, Pakistan. Design/methodology/approach - Data were collected for 250 non-financial organisations listed on the Karachi Stock Exchange of Pakistan. Multiple linear regression analysis was used to empirically test the research question. Findings - PCs in Pakistan are common across all industries. The study found a significantly negative effect of PCs on organisational performance, measured in terms of return on assets and return on equity. In addition, negative association of PCs with organisational performance is more pronounced for organisations having connections with politicians, compared to those having connections with former government officials. Originality/value - The study extends the PCs literature by providing evidence of the impact of PCs on organisational performance in a South Asian country. Several implications for organisations, banks, accounting professionals and policy-makers are provided.
AB - Purpose - This paper aims to investigate the association between political connections (PCs) and organisational performance in a South Asian country, Pakistan. Design/methodology/approach - Data were collected for 250 non-financial organisations listed on the Karachi Stock Exchange of Pakistan. Multiple linear regression analysis was used to empirically test the research question. Findings - PCs in Pakistan are common across all industries. The study found a significantly negative effect of PCs on organisational performance, measured in terms of return on assets and return on equity. In addition, negative association of PCs with organisational performance is more pronounced for organisations having connections with politicians, compared to those having connections with former government officials. Originality/value - The study extends the PCs literature by providing evidence of the impact of PCs on organisational performance in a South Asian country. Several implications for organisations, banks, accounting professionals and policy-makers are provided.
KW - Organisational performance
KW - Pakistan
KW - Political connections
KW - Return on assets
KW - Return on equity
UR - http://www.scopus.com/inward/record.url?scp=84994371729&partnerID=8YFLogxK
U2 - 10.1108/IJAIM-05-2016-0053
DO - 10.1108/IJAIM-05-2016-0053
M3 - Article
AN - SCOPUS:84994371729
SN - 1834-7649
VL - 24
SP - 321
EP - 338
JO - International Journal of Accounting and Information Management
JF - International Journal of Accounting and Information Management
IS - 4
ER -