Political embeddedness and corporate strategies in China

Abstract

This dissertation aims to investigate how political embeddedness influences firms’ strategies such as financial and non-financial reporting and internationalization. I have identified whether and how political embeddedness (i.e., government ownership and political connections, both at the central and the local level) affects corporate reporting strategies, particularly in light of the recent policy changes regarding the financial and non-financial reporting of firms in China. In addition, considering the recent government programs that were introduced to facilitate Chinese IFDI and OFDI, I have investigated the effect of political embeddedness on Chinese firms’ internationalization strategies as well. Specifically, Chapters 2-4 examine the influence of political embeddedness on firms’ use of earnings management, CSR reporting, and the propensity to internationalize, respectively.