Suchergebnisse

This study investigates the impact of political connection and information asymmetry on the investment efficiency of firms in China. This paper employs a panel data regression analysis on a dataset comprising 4307 observations for listed companies from 2008 to 2015. The results indicate that if taken alone, neither political connection nor information asymmetry affects firms&rsquo ; investment efficiency. However, the interactive effect of both political connection and information asymmetry significantly reduces firms&rsquo ; investment efficiency. The results of this study help investors understand the forces that lead the Chinese firms to deviate from optimal investment decisions.