Open AccessCorporate political connection as a determinant of corporate governance in Hong Kong
Author(s) -
Philip Lawton
Publication year - 2020
Publication title -
northern ireland legal quarterly
Language(s) - English
Resource type - Journals
eISSN - 2514-4936
pISSN - 0029-3105
DOI - 10.53386/nilq.v63i4.398
Subject(s) - corporate governance , politics , connection (principal bundle) , accounting , business , corporate law , political science , law , finance , engineering , structural engineering
This article reports a study which uses a unique dataset compiled from listed companies in Hong Kong to demonstrate the relationship between corporate political connection with the corporate structure, ownership background and industry type of companies. The study shows that companies with political connection tend to be larger companies while Chinese family-controlled companies and more regulated companies have a higher level of political connection. Identifying the inadequacies of the existing theories in explaining corporate governance in Hong Kong, the article suggests adopting corporate political connection as a determinant of corporate governance in Hong Kong and elsewhere.