Medienecho
Medienecho November 2024 Steffen Müller: Firmaer er oftere i problemer in: Flensborg Avis, 22.11.2024 Steffen Müller: Zahl der Insolvenzen steigt in: Süddeutsche.de, 21.11.2024…
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IWH-DPE-Absolventen-Platzierungen
IWH-DPE-Absolventen-Platzierungen Nach Abschluss ihrer Promotion übernehmen viele Teilnehmerinnen und Teilnehmer des IWH-Doktorandenprogramms herausragende Positionen in…
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IWH-Subventionsdatenbank
IWH-Subventionsdatenbank Die Mikrodatenbank umfasst zurzeit neun Datensätze zu Programmen direkter Unternehmenssubventionen in Deutschland. Die von den Projektträgern und den…
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Datenschutz
Datenschutzerklärung Wir nehmen den Schutz Ihrer persönlichen Daten sehr ernst und behandeln Ihre personenbezogenen Daten vertraulich und entsprechend der gesetzlichen…
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Transactional and Relational Approaches to Political Connections and the Cost of Debt
Taufiq Arifin, Iftekhar Hasan, Rezaul Kabir
Journal of Corporate Finance,
December
2020
Abstract
This paper examines the economic effects of a firm's approach to developing and maintaining political connections. Specifically, we investigate whether lenders favor transactional connection as opposed to relational connection. By tracing firms in a politically volatile emerging democracy in Indonesia, we find that firms following a transactional political connection strategy experience a relatively lower cost of debt than those with a relational strategy. The effect is more pronounced for firms facing high financial distress. The finding is robust to cost of bank loans and a variety of regression methods. Overall, the evidence suggests that in times of frequently changing political regimes, firms benefit from a transactional relationship with politicians as it enables to update connection with the government in power. Relational connection is valuable for a firm only when the political regime connected with it gains power.
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14.12.2020 • 25/2020
Deutsche Lebensversicherer investieren nicht ausreichend in Start-ups
Die deutschen Lebensversicherer legen ihr Kapital bislang zu wenig in Aktien an und hemmen so die wirtschaftliche Dynamik. Eine Studie des Leibniz-Instituts für Wirtschaftsforschung Halle (IWH) legt nahe, dass der Gründerszene Risikokapital fehlt, um erfolgreiche Start-ups zu finanzieren. Grund dafür ist das Anlageverhalten potenzieller Investoren. IWH-Präsident Reint Gropp fordert Reformen, die die Finanzierung innovativer Ideen fördern.
Reint E. Gropp
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Corporate Misconduct and the Cost of Private Debt: Evidence from China
Xian Gu, Iftekhar Hasan, Haitian Lu
Comparative Economic Studies,
Nr. 3,
2019
Abstract
Using a comprehensive dataset of corporate lawsuits in China, we investigate the implications of corporate misconduct on the cost of private debt. Evidence reveals that firms involved in litigations obtain subsequent loans with stricter pricing terms, 15.1 percent higher loan spreads, than non-litigated borrowers. Strong political connection and repeated relationship help to flatten the sensitivity of loan pricing to litigation. Nonbank financial institutions react in stronger manner to corporate misconduct than traditional banks in pricing loans. Overall, we show that private debt holders care about borrowers’ wrongdoing in the past.
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Political Influence and Financial Flexibility: Evidence from China
Xian Gu, Iftekhar Hasan, Yun Zhu
Journal of Banking and Finance,
February
2019
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.
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Politics, Banks, and Sub-sovereign Debt: Unholy Trinity or Divine Coincidence?
Michael Koetter, Alexander Popov
Deutsche Bundesbank Discussion Paper,
Nr. 53,
2018
Abstract
We exploit election-driven turnover in State and local governments in Germany to study how banks adjust their securities portfolios in response to the loss of political connections. We find that local savings banks, which are owned by their host county and supervised by local politicians, increase significantly their holdings of home-State sovereign bonds when the local government and the State government are dominated by different political parties. Banks' holdings of other securities, like federal bonds, bonds issued by other States, or stocks, are not affected by election outcomes. We argue that banks use sub-sovereign bond purchases to gain access to politically distant government authorities.
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Politically Connected Firms in Poland and Their Access to Bank Financing
Iftekhar Hasan, Krzysztof Jackowicz, Oskar Kowalewski, Łukasz Kozłowski
Communist and Post-Communist Studies,
Nr. 4,
2017
Abstract
This paper characterizes politically connected firms and their access to bank financing. We determine that the relationship between political connections and access to long-term bank loans is weaker in Poland than in other emerging economies. The most probable explanation for this result is related to the instability of the political climate in Poland. We find that only certain kinds of political connections, such as recent connections, positively influenced access to bank financing during the sample period from 2001 to 2011. Moreover, we obtain also some evidence that the value of political connections increased during the 2007 crisis period and onward.
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