Beschreibung

"In the last 20 years, the share of German firms with political connections has increased, but the impact of political connections on firm growth is not clear. This column examines how German firm outcomes are affected when federal politicians serve as firm directors or officers. Firms appointing a politician to a corporate position are less likely to exit over the next five years than firms who appoint a non-politician, possibly due to better access to credit. Firms appointing a parliamentary politician also grow faster. However, productivity tends to slow down." (Author's abstract, IAB-Doku, © VOXEU) ((en))