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The study aims to examine the impact of different types of political connections in Pakistan on the performance of firms. We further examine whether the presence of external monitors, such as foreign and institutional investors, can moderate the impact of political connections on the performance...
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politicians ascent to higher office, if it entails stricter scrutiny that may reduce favoritism. Around close Congress elections …, we find RDD-based evidence of this adverse effect that a politicians win reduces his former classmates firms stock value … effect. It further varies with politicians power, firm size and governance, and connection strength, and diminishes as a …
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