Family Firms, Firm Performance and Political Connections: Evidence from Bangladesh

Posted: 9 Aug 2015

See all articles by Mohammad Badrul Muttakin

Mohammad Badrul Muttakin

Deakin University

Reza Monem

Griffith University - Griffith Business School; Griffith Business School, Griffith University

Arifur Khan

Deakin University - School of Accounting, Economics and Finance

Nava Subramaniam

Deakin University

Date Written: August 8, 2015

Abstract

We investigate the role of political connections in the performance of family firms. We do so in the setting of Bangladesh, an emerging economy in which family firms are dominant and a weak regulatory environment increases the payoffs from political connections. We find that family firms perform better than nonfamily firms. Moreover, politically connected family firms outperform family firms that are not politically connected. In contrast, nonfamily firms with political connections demonstrate lower firm performance than nonfamily firms without political connections.

Keywords: Political connections, Family firms, Firm performance, Emerging economy, Bangladesh

JEL Classification: G32

Suggested Citation

Muttakin, Mohammad Badrul and Monem, Reza M. and Khan, Arifur and Subramaniam, Nava, Family Firms, Firm Performance and Political Connections: Evidence from Bangladesh (August 8, 2015). Available at SSRN: https://ssrn.com/abstract=2641284

Mohammad Badrul Muttakin

Deakin University ( email )

Department of Accounting
Burwood, Victoria 3125
Australia

Reza M. Monem

Griffith University - Griffith Business School ( email )

170 Kessels Road
Brisbane, Nathan, QLD 4111
Australia

Griffith Business School, Griffith University ( email )

170 Kessels Road
Nathan
Brisbane QLD 4111
Australia

Arifur Khan (Contact Author)

Deakin University - School of Accounting, Economics and Finance ( email )

221 Burwood Highway
Burwood, Victoria 3125
Australia

Nava Subramaniam

Deakin University ( email )

Melbourne Campus at Burwood
221 Burwood Highway
Victoria 3125, Victoria
Australia

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