The Effects of Political Connections with Government on Financial Performance of Hotel and Tourism Firms in China
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
Despite the acknowledged importance of political connections for business success, studies specifically examining their effects on hotel and tourism firms remain limited. This study addresses this gap by investigating how political connections between hotel and tourism firms and the government influence their financial performance, as measured by Tobin’s Q. Furthermore, a market-related factor is introduced as a moderator in the relationship between political connections and firm performance within China’s hotel and tourism industry. The findings indicate that firms with stronger political networks with the government exhibit a higher Tobin’s Q. Moreover, the positive effects of political connections are amplified when market demand uncertainty is high in China. These results provide valuable insights into the strategic necessity of political connections with the government for hotel and tourism firms. This study offers substantial contributions to both the existing literature and practitioners aiming to operate in the Chinese market.
Abstract
Despite the acknowledged importance of political connections for business success, studies specifically examining their effects on hotel and tourism firms remain limited. This study addresses this gap by investigating how political connections between hotel and tourism firms and the government influence their financial performance, as measured by Tobin’s Q. Furthermore, a market-related factor is introduced as a moderator in the relationship between political connections and firm performance within China’s hotel and tourism industry. The findings indicate that firms with stronger political networks with the government exhibit a higher Tobin’s Q. Moreover, the positive effects of political connections are amplified when market demand uncertainty is high in China. These results provide valuable insights into the strategic necessity of political connections with the government for hotel and tourism firms. This study offers substantial contributions to both the existing literature and practitioners aiming to operate in the Chinese market.