Ling Ling from the Georgia College Gave Lecture in Our University

On June 22, the 22nd edition of the “Luojia Financial Forum” was held in the School of Economics and Management. Associate Professor Ling Ling from the Georgia College and State University delivered an academic report entitled Political Connection, Overinvestment and Firm Performance.

Professor Ling examined the impact of political connection on external financing, investment and performance for listed companies. In his research, he focused more on the political background of the high-level executives, and found that political connection has a negative correlation with the company’s profitability. At the same time, he believed that companies with strong political connection usually can get loans with longer term, therefore, they are more likely to engage in overinvestment, this explains the negative impact of political association on company’s performance. (School of Economics and Management)