US EditionPolitical Connections Count In Business
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Political Connections Count In Business
A study from the University of Portsmouth reveals how high-level political connections can boost the value of corporate cash holdings. Analyzing nine years of data from 16,706 Chinese companies, the researchers found that firms with politically powerful board members enjoy better access to resources and investment opportunities, which increases the market’s perception of their cash reserves. The key lies in the type of connection. Directors with…
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