Corporate Political Connections: How Do They Affect Corporate Transparency
Résumé
Government interacts with private businesses in a number of ways: it regulates them, it taxes them but it also purchases goods and services from them and it provides financial help to them – which in particular in times of pandemic can be substantial. There is hence clearly an incentive for firms to establish close connections to politicians. What are the economic effects of such connections? And how do they affect corporate transparency?