Abstract
The aim of this study was to highlight the key finding of corporate politicalconnections research. This study used 61 previous studies related tocorporate political connections to develop a structured literature review. Itwas found that most studies were conducted in developing countries as theyprovided a unique institutional setting for conduct political connectionsresearch. In addition, a political connection is used as independentvariables and the previous studies focuses on three related topics, whichare corporate performance, corporate action, and loan and special rights.Literature review study become more important nowadays, as the numberof empirical quantitative research amount has been increased lately. Thisanalysis also has research and practical implementation for researcher,practitioners, and regulators.
Highlights
Unlike quantitative and qualitative studies, the usage of literature review is not a popular method in business, management, and accounting studies
This study examines the previous studies related to political connection of firms that publish in certain reputable journals
This study focuses on listing quantitative studies where the researchers identify what variable we can possibly connect with the firms’ political connection
Summary
Unlike quantitative and qualitative studies, the usage of literature review is not a popular method in business, management, and accounting studies. Luft and Shields (2003) in one of seminal study used literature review as an approach to examine the relationship between variables within accounting management scope. As far as authors examines, the first studies of political connection related to corporate that publish in reputable journals based on several indexer was conducted by Dinc (2005) and Khwaja and Mian (2005). They studied how politics influence government-owned banks (Dinc, 2005) and lender perceptions on politically connected firms (Khwaja and Mian, 2005). Both of those papers focused on loan size and characteristics
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