The Impact of Political Connections on the Firm Efficiency: Evidence from the Conceptual Framework

Abstract

Every organization needs support to run their business. In this study, try to explore that political connections are externally benefited for the firm value. It is a way through a corporation can assess benefits from external resources. Politically connected corporations are mostly recognized due to get a donation. These donations are beneficial in the condition of financial calamity. According to resources dependency theory, to enhance the performance there is need external sources. In this way, it is a resilient channel to boost performance. They can face the gravest threats with their influence. Political cronyism is known as a potential source of external income. Under these settlements, there is a massive compelling reason that proves these are vigorously sourced in the economy deteriorate. In this study political donation is our core tool to magnificent performance. This study is trying to elaborate that due to political connections have influenced on the firm performance due to efficiency.