The Relationship between Corporate Political Strategy of Public Partnership and Corporate Investment

This research endeavors to elucidate the dynamics between Corporate Political Activity (CPA) and corporate investment by harnessing advanced econometric techniques, specifically quantile regression and dynamic panel data analysis. The empirical investigation encompasses a comprehensive dataset of 3...

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Main Authors: Lin Woon Leong, Kelvin Lee Yong Ming, Pek Chuen Khee, Irfah Najihah Binti Basir Malan, Ho Ree Chan
Format: Article
Language:English
Published: National Research University Higher School of Economics 2024-07-01
Series:Foresight and STI Governance
Subjects:
Online Access:https://foresight-journal.hse.ru/article/view/21907
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author Lin Woon Leong
Kelvin Lee Yong Ming
Pek Chuen Khee
Irfah Najihah Binti Basir Malan
Ho Ree Chan
author_facet Lin Woon Leong
Kelvin Lee Yong Ming
Pek Chuen Khee
Irfah Najihah Binti Basir Malan
Ho Ree Chan
author_sort Lin Woon Leong
collection DOAJ
description This research endeavors to elucidate the dynamics between Corporate Political Activity (CPA) and corporate investment by harnessing advanced econometric techniques, specifically quantile regression and dynamic panel data analysis. The empirical investigation encompasses a comprehensive dataset of 368 entities listed in Fortune World's Most Admired Companies spanning from 2016 to 2022. The empirical results illuminate the intricate relationship between CPA and corporate investment, indicating that firms engaging in politically strategic maneuvers typically demonstrate elevated investment rates in comparison to their counterparts devoid of such political strategization. Notably, this inquiry unveils a complex pattern, whereby CPA exerts a detrimental impact on corporate investment at superior quantiles (notably, the 80th and 90th percentiles), whereas an inverse effect is observed at the lower quantiles (specifically, the 10th and 20th percentiles). Furthermore, the analysis delineates an inverted V-shaped correlation between CPA and corporate investment, suggesting a nuanced interaction that varies across different levels of investment intensity. In examining firm-specific attributes, the influence of CPA on corporate investment appears to attenuate in entities characterized by substantial size and robust economic and technical prowess. Such firms exhibit diminished dependency on governmental support for their investment ventures, highlighting the differential impact of CPA based on firm-specific characteristics and strategic dispositions.
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spelling doaj-art-783aae665397469fb8ec822ca34d20a92025-08-20T03:17:02ZengNational Research University Higher School of EconomicsForesight and STI Governance2500-25972024-07-0118210.17323/2500-2597.2024.2.31.44The Relationship between Corporate Political Strategy of Public Partnership and Corporate InvestmentLin Woon Leong0Kelvin Lee Yong Ming1Pek Chuen Khee2Irfah Najihah Binti Basir Malan3Ho Ree Chan4Taylor’s UniversityTaylor’s UniversityTaylor’s UniversityUniversiti Teknologi MARA Taylor’s University This research endeavors to elucidate the dynamics between Corporate Political Activity (CPA) and corporate investment by harnessing advanced econometric techniques, specifically quantile regression and dynamic panel data analysis. The empirical investigation encompasses a comprehensive dataset of 368 entities listed in Fortune World's Most Admired Companies spanning from 2016 to 2022. The empirical results illuminate the intricate relationship between CPA and corporate investment, indicating that firms engaging in politically strategic maneuvers typically demonstrate elevated investment rates in comparison to their counterparts devoid of such political strategization. Notably, this inquiry unveils a complex pattern, whereby CPA exerts a detrimental impact on corporate investment at superior quantiles (notably, the 80th and 90th percentiles), whereas an inverse effect is observed at the lower quantiles (specifically, the 10th and 20th percentiles). Furthermore, the analysis delineates an inverted V-shaped correlation between CPA and corporate investment, suggesting a nuanced interaction that varies across different levels of investment intensity. In examining firm-specific attributes, the influence of CPA on corporate investment appears to attenuate in entities characterized by substantial size and robust economic and technical prowess. Such firms exhibit diminished dependency on governmental support for their investment ventures, highlighting the differential impact of CPA based on firm-specific characteristics and strategic dispositions. https://foresight-journal.hse.ru/article/view/21907long-term strategiestechnological capabilitiesresearch and developmentinnovationcorporate political activitycorporate investment
spellingShingle Lin Woon Leong
Kelvin Lee Yong Ming
Pek Chuen Khee
Irfah Najihah Binti Basir Malan
Ho Ree Chan
The Relationship between Corporate Political Strategy of Public Partnership and Corporate Investment
Foresight and STI Governance
long-term strategies
technological capabilities
research and development
innovation
corporate political activity
corporate investment
title The Relationship between Corporate Political Strategy of Public Partnership and Corporate Investment
title_full The Relationship between Corporate Political Strategy of Public Partnership and Corporate Investment
title_fullStr The Relationship between Corporate Political Strategy of Public Partnership and Corporate Investment
title_full_unstemmed The Relationship between Corporate Political Strategy of Public Partnership and Corporate Investment
title_short The Relationship between Corporate Political Strategy of Public Partnership and Corporate Investment
title_sort relationship between corporate political strategy of public partnership and corporate investment
topic long-term strategies
technological capabilities
research and development
innovation
corporate political activity
corporate investment
url https://foresight-journal.hse.ru/article/view/21907
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