Yen, Ju-Fang; Chen, Yan-Shing; Lin, Chih-Yung; Tsai, … - In: Applied Economics Letters 21 (2014) 8, pp. 550-555
This article examines the relationship between political and business connections (PBCs) and firms' financial constraints. We proxy a firm's PBCs by whether or not the firm's CEO should hold a directorship in major trade organizations. Using an endogenous switching regression model, we find that...