ABSTRACT

This paper uses the exogenous shock- Thailand military coup on May 22, 2014-as a natural experiment to test the impact of military political connections on the value of Thai’s listed firms. Results show that the military coup will bring significant benefits to the share price of listed firms with military political connections. Moreover, the DID estimations show that the military rule can significantly increase the Tobin’s Q of military political affiliates after the military coup. The main influential mechanism is that, after the military is in power, the listed firms will hire personnel with military background to enter the management. This move will bring long-term financing convenience to the military politically connected firms and enable them to use more funds to capital investment and R & D activities.

摘要

本文以2014年5月22日泰国军事政变的外生冲击为自然实验，检验军事政治关系对泰国上市公司价值的影响。结果表明，军事政变将对具有军事政治关系的上市公司的股价带来显着的利好。此外，DID 估计表明，军事统治可以显着提高军事政变后军事政治附属机构的托宾 Q。主要的影响机制是，军队上台后，上市公司将聘用有军队背景的人员进入管理层。此举将为军政企业带来长期融资便利，使其能够将更多资金用于资本投资和研发活动。