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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
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Political influence and financial flexibility: Evidence from China, Journal of Banking and Finance February (2019). Gu, Xian; Hasan, Iftekhar; Zhu, Yun

Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Gu, Xian; Hasan, Iftekhar; Zhu, Yun 
Number of authors
Status Published
Year of publication 2019 
Date 15.02.2019 
Name of article Political influence and financial flexibility: Evidence from China 
Name of journal Journal of Banking and Finance
Volume of issue 99 
Number of issue February 
Pages 142-156 
Abstract This paper investigates how political influence affects firms’ financial flexibility and speed of adjustment toward target leverage ratios. We find that at the macro level, firms in environments with high political advantages, proxied by provincial affiliations with heads of state as well as political status and party rank of provincial leaders, adjust faster. At the micro level, firms that are state-owned, have CPC members as executives, or bear low exposure to changes in political uncertainty adjust faster. When interacted, the micro-level political factors have more significant impact.
Free text descriptor in Finnish politiikka; vaikutusvalta; Kiina; yritykset; rahoitus; 
Free text descriptor in English Political influence; Political environment; Political connection; Financial flexibility; Speed of adjustment 
JEL-codes G30; G32; P16 
ISSN / e-ISSN 0378-4266 
auki Internet addresses
Additional information Available online 8 December 2018.