Differentiating Political Connections in Authoritarian Regimes
SECTOR ▸ RESEARCH ▸ PAPERAbstract
The paper explores how different types of political connections affect firm performance in authoritarian contexts, highlighting the heterogeneity in the benefits and costs associated with these relationships.
@unpublished{lee2026connections,
title={Differentiating Political Connections in Authoritarian Regimes},
author={Lee, Chiahsin},
year={2026},
note={Working paper},
url={https://chiahsinlee.github.io/research/differentiating-political-connections/}
}Research question
Political connections are not a single treatment. Board seats, party membership, and legislative appointments can pull firms in different directions — access to credit and contracts on one side, scrutiny and soft-budget constraints on the other. When do connections help, when do they hurt, and through which channel?
Data
Chinese listed firms matched to director-level political ties (party committees, NPC/CPPCC appointments, and related institutional seats), with firm-year performance and financing outcomes.
Identification
Typology of connection sub-types at the board and ownership level; estimates rely on staggered appointment timing and within-firm variation across connection channels.
Status
Working paper. Draft available on request while the PDF is prepared for hosting.