Abstract
ABSTRACTThe government of China plays an important role in the external environment of private sector enterprises (PSEs), having a significant effect on their survival and development. Therefore, managing their relationship with the government becomes a key aspect of strategic decision-making and operating actions of PSEs. We extend the evidence of this by introducing a new dimension of political connection: partial state ownership of PSEs. Using a data set of 262 publically listed PSEs in China, we empirically investigate the effects of partial state ownership of PSEs on the access to bank loans.
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