The Role of Political Connections in Bad Times: Evidence from the COVID-19 Pandemic

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Abstract

This study investigates the relationship between political connections and firm financial performance in the COVID-19 pandemic. Using a difference-in-differences methodology, we found that politically connected enterprises paid more taxes, employed more employees, and damaged financial performance. This study enriches the literature on the impact of COVID-19 on enterprises and provides suggestions for regulators.

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europepmc
last seen: 2026-05-19T01:45:01.086888+00:00