Financial Constraints in Poland. The Role of Size and Political Connections
This article investigates the phenomenon of financial constraints in investment activities. Using a data set covering 2001-2011, we established that, despite the institutional changes and the financial system development, Polish firms remain financially constrained by the internally available funds. Additionally, we explored the impact of size and political connections on financial constraints. Unexpectedly we found that the financial constraints are not affected by either the size or the type nor the strength of political connections.(original abstract)
- Agarwal, A., Knoeber, C. R., Do Some Outsider Directors Play a Political Role?, "Journal of Law and Economics", 44 (1), pp. 179-198, 2001.
- Amore, M. D., Bennedsen, M., The Value of Local Political Connections in a Low-corruption Environment, "Journal of Financial Economics", 110, pp. 387-402, 2013.
- Beck, T., Demirguc-Kunt, A., Laeven, L., Maksimovic, V., The Determinants of Financing Obstacles, "Journal of International Money and Finance", 25, pp. 932-952, 2001.
- Bliss, M. A., Gul, F. A., Political Connection and Leverage: Some Malaysian Evidence, "Journal of Banking and Finance", 36, pp. 2344-2350, 2012.
- Blundell, R. W., Bond, S. R., Initial Conditions and Moment Restrictions in Dynamic Panel Data Models, "Journal of Econometrics", 87, pp. 115-143, 1998.
- Boubakri, N., Cosset, J. C., Saffar, W., The Impact of Political Connections on Firms' Operating Profit and Financing Decisions, "Journal of Financial Research", 35, pp. 397-423, 2012.
- Bunkanwanicha, P., Wiwattanakantang, H., Big Business Owners in Politics, "Review of Financial Studies", 22 (6), pp. 2133-2168, 2009.
- Chan, K. S., Dang, V. Q. T, Yan, I. K. M. (a), Financial Reform and Financing Constraints: Some Evidence from Listed Chinese firms, "China Economic Review", 23, pp. 482-497, 2012.
- Chan, K. S., Dang, V. Q. T, Yan, I. K. M. (b), Chinese Firms' Political Connection, Ownership, and Financing Constraints, "Economics Letters", 115, pp. 164-167, 2012.
- Chan, K. S., Dang, V. Q. T., Yan, I. K. M. (c), Effects of Financial Liberalization and Political Connection on Listed Chinese Firms' Financing Constraints, "The World Economy", 35, pp. 483-499, 2012.
- Claessens, S., Feijen, E., Laeven, L., Political Connections and Preferential Access to Finance: The Role of Campaign Contributions, "Journal of Financial Economics", 88, pp. 554-580, 2008.
- Faccio, M., Politically Connected Firms, "American Economic Review" 96, pp. 369-386, 2006.
- Guariglia, A., Tsoukalas, J., Tsoukas, S., Investment, Irreversibility, and Financing Constraints: Evidence from a Panel of Transition Economies, "Economics Letters", 117, pp. 582-584, 2012.
- Ghosh, S., Did Financial Liberalization Ease Financing Constraints? Evidence from Indian Firm-level Data, "Emerging Markets Review", 7, pp. 176-190, 2006.
- Hasan, I., Jackowicz, K., Kowalewski, O., Kozłowski, Ł., Politically Connected Firms in Poland and Their Access to Bank Financing, "Bank of Finland", BOFIT Discussion Paper, 2, 2014.
- Houston, J. F., Jiang, L., Lin, C., Ma, Y., Political Connections and the Cost of Bank Loans, Available at SSRN, http://dx.doi.org/10.2139/ssrn.1911760, 2012.
- Jackowicz, K., Czynniki polityczne w bankowości. Ujęcie empiryczne [Political Factors in Banking. Empirical Approach], Poltext, 2013.
- Jackowicz, K., Kowalewski, O., Kozłowski, Ł., The Influence of Political Factors on Commercial Banks in Central European Countries, "Journal of Financial Stability", 9, pp. 759-777, 2013.
- Jackowicz, K., Kozłowski, Ł., Mielcarz, P., Political Connections and Operational Performance of Non-financial Firms. New Evidence from Poland, "Emerging Markets Review", 20, pp. 109-135, 2014.
- Kang, J-K., Zhang, L., From Backroom to Boardroom: Role of Government Directors in U.S. Public Firms and Their Impact on Performance, Available at SSRN, http://ssrn.com/abstract=2115367, 2012.
- Khwaja, A. I., Mian, A., Do Lenders Favor Politically Connected Firms? Rent Provision in an Emerging Market, "Quarterly Journal of Economics", 120 (4) , pp. 1371-1411, 2005.
- Konings, J., Rizove, M., Vandenbussche, H., Investment and Financial Constraints in Transition Economies: Micro Evidence from Poland, the Czech Republic, Bulgaria, and Romania, "Economic Letters",78, pp. 253-258, 2003.
- Lagoarde-Segot, T., Does Stock Market Development Always Improve Firm-level Financing? Evidence from Tunisia, "Research in International Business and Finance", 27, pp. 183-208, 2013.
- Lazzarini, S. G., Muscacchio, A., Bandeira-de-Mello, R., Marcon, R., What Do Development Banks Do? Evidence from Brazil, 2002-2009. Available at SSRN: http://ssrn.com/abstract=1969843 or http://dx.doi.org/10.2139/ssrn.1969843, 2012.
- Liu, J., Uchida, K., Gao, R., Political Connections and the Long-term Stock Performance of Chinese IPOs, "Journal of International Financial Markets", "Institutions and Money", 22, pp. 814-833, 2012.
- Malesky, E. J., Taussig, M. D., Where Is Credit Due? Legal Institutions, Connections, and the Efficiency of Bank Lending in Vietnam, "Journal of Law, Economics, and Organization", 25, pp. 535-578, 2009.
- Modigliani, F., Miller, M., The Cost of Capital, Corporation Finance, and the Theory of Investment, "American Economic Review", 48, pp. 261-297, 1958.
- Myers, S., C., Majluf, S. Corporate Financing and Investment Decisions when Firms Have Information that Investors do not Have, "Journal of Financial Economics", 13 (2), pp. 187-221, 1984.
- Xu, N., Xu, X., Yuan, Q., Political Connections, Financing Friction, and Corporate Investment: Evidence from Chinese Listed Family Firms, "European Financial Management", http://doi:10.1111/j.1468036X.2011.00591.x, pp. 1-23, 2011.