Political Connectedness and Firm Performance: Shareholders value and accounting performance around elections

This paper examines the degree to which political connections affect construction, oil and financial firms performance. The analysis demonstrates that business performance is associated with connectedness through industry and firm level data. We show that political connectedness varies according to the firm's channel of access to obtain favouritism either through direct personal ties or institutional networks. Ideological motivations emerge to be significant in mobilizing, shaping and tying firm behaviour to broader political agendas. In the conclusion we discuss the impact of deepening connectedness on long-term business fortunes and political institutions.