Copenhagen Business School - Department of Strategy and Innovation, Canada
In this paper, I examine the effect of political connections on individuals’ firm ownership. Defining political connected individuals as politicians’ family members, I find that these individuals are significantly more likely to become firm owners. Using the financial crisis in 2008 as an external shock, I argue that politically connected individuals have improved levels of resilience against adverse economic conditions. This finding extends literature related to non-market strategy as well as entrepreneurship and highlights the importance of political connections, even in a low-corruption environment.
