Abstract

Emerging economies are characterised by a high proportion of family-owned businesses, significant political corruption, and a weak legal system which creates a more favourable environment for politically-connected family firms. Hence, we investigate the effect of political connections on firm performance in family and non-family-owned firms through advanced panel estimation techniques. Our result is based on a sample of publicly listed 150 non-financial firms from Pakistan Stock Exchange (PSX) over the period 2013–2018. We demonstrate that politically connected family-owned firms perform better than non-family owned connected firms. These findings have important policy implications for countries such as Pakistan which have experienced recent increases in the number of family-owned firms.

摘要

新兴经济体的特点是家族企业比例高，政治腐败严重，法律制度薄弱，这为有政治联系的家族企业创造了更有利的环境。因此，我们通过先进的面板估计技术研究政治关系对家族和非家族企业绩效的影响。我们的结果基于 2013 年至 2018 年期间巴基斯坦证券交易所 (PSX) 的 150 家公开上市非金融公司的样本。我们证明政治关联的家族企业比非家族关联的企业表现更好。这些发现对巴基斯坦等最近家族企业数量增加的国家具有重要的政策意义。