The Impact of Political Involvement on Firms’ Financial Performance


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Authors

  • Ruba Khalid Shira Department of Finance, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, Saudi Arabia

DOI:

https://doi.org/10.32479/ijefi.16021

Keywords:

Political Involvement, Firm Performance, Financial Leverage, Banking Sector, South Asian Economies

Abstract

Political involvement helps businesses to obtain key government resources and support. Political involvement assists businesses to take actions that reduce uncertainty, provide shield and environmental dependence from the environmental threats that can directly impact their performance. This study aims to investigate the impact of political involvement on banks’ sustainable performance in selected South Asian economies (Pakistan, Bangladesh, India, and Sri Lanka). The data is collected from DataStream for the period of 2013-2022. The Generalized Method of Moments (GMM) is employed to analyze the results. The study finds that political involvement negatively affects the firm’s sustainable performance. This study is helpful for management of the organizations and shareholders to increase firm performance by reducing political involvement.

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Published

2024-05-14

How to Cite

Shira, R. K. (2024). The Impact of Political Involvement on Firms’ Financial Performance. International Journal of Economics and Financial Issues, 14(3), 33–39. https://doi.org/10.32479/ijefi.16021

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Articles