Corporate political connection as a determinant of corporate governance in Hong Kong

Abstract

This article reports a study which uses a unique dataset compiled from listed companies in Hong Kong to demonstrate the relationship between corporate political connection with the corporate structure, ownership background and industry type of companies. The study shows that companies with political connection tend to be larger companies while Chinese family-controlled companies and more regulated companies have a higher level of political connection. Identifying the inadequacies of the existing theories in explaining corporate governance in Hong Kong, the article suggests adopting corporate political connection as a determinant of corporate governance in Hong Kong and elsewhere.