Efficient political ties boost corporate performance, benefiting stakeholders.
The article explores how political connections affect the performance of companies, focusing on the importance of efficiency. By analyzing 58 studies, it was found that politically connected firms with higher efficiency tend to perform better. This is supported by various theories, showing that political ties can boost a company's performance through efficiency. The research suggests further investigation into these relationships and highlights the value of these findings for investors, policymakers, and stakeholders.