New evidence: Politically Connected Firms are prevalent around the world

Professor Mara Faccio’s new paper (publisehd in the American Economic Review)  shows that politically connected firms are prevalent around the world (not only in Thailand, Indonesia), and the announcement of a new political connection (e.g. businessmen entering politics) results in a significant increase in value.

Politically connected firms (PDF file)
Abstract: Examination of firms in 47 countries shows a widespread overlap of controlling shareholders and top officers who are connected with national parliaments or governments, particularly in countries with higher levels of corruption, with barriers to foreign investment, and with more transparent systems. Connections are diminished when regulations set more limits on official behavior. Additionally, I show that the announcement of a new political connection results in a significant increase in value.

Comments

[Freelance Researcher Code 00115679 NRCT 90 UNESCO 53000]

The case study in Thailand
Taksin only do for his beneficial and make megabucks for his family with amtbitious to be supreme leader of Thailand for protecting his business.He do not worry about the benefit of Thai Nation and can do every things even sale Thailand to anyone who can give him the Megabucks and give poor Thai peoples for only crumbs.His mess Megaprojects is nothings no feasibility study even interim study report.He do this only for his Mega coruptions. He is a con man use secret information in floating bath value in 1997 for make ample rich for him and his company. He is a lair man by lie everday untill he believe the words that he spoke are the truth. In long run if Taksin still in his power Thailand will callapse like Ayuthia in the past history of Siam.
Common People can not harmony with Bandits. Good can not harmony with Bad. Like Water can not harmony with Fire. Becuase this word ,made Ayuthia lose to Burma, The Harmony do nothing only wait for flood season to make Burmesse retreat but they not retreated but loot and burn down Ayuthia and took Harmony people to be slaves in Burma (If they only fought like Bangrachan peoples and King Tak Sin the Great, We would protected Ayuthia from burn down because there were many canons and gun powder and amunitions in Ayuthia,that is a information from the Ducth East India Company VOC record) , this is a worse lesson to the Thai people. We do not want to be depency in economic, our child will be employees to Singgapore and Thailand have Singapore soldiers in our mother land. It is very embarasment to thai soldiers who serve our country and recieved payroll from our tax.
Taksin is planning to set up Spacial Economic Areas in Thailand and sale to Singapore, one of his plan is Suwannapoom.He is a traitor.
From now on, all rivers of dirty money and Corruptions will come to Taksin and TRT Party because they absolute control the Nation. They will enjoy with violent human rights and genocide and sale our motherland . It very sad story, Ratanakosin will go down like Ayuthia in 1767 and our children will be employees of Singapore, poor people will recieve only crumbs and little meat with bone from them. I would like to cry out for our Motherland
I do not know why Election Commission do great beneficial to Taksin and TRT party in every way that they can do, Why they do not think about his Motherland that give them everything, edication, posititon. livinplace etc., why they can do wrong for his boss and do not think that his boss are mortal and they are not always absolute power. Are they sold their soul to Satan?
You can notice that why Baht value is very rigid because Taksin and his Care Taker Carbinet set up Baht value rigid for beneficial of their dirty money from corruption can change to foreign curency in more value.
Election Commision is dam mad, set up several time elections until a few day to the dead line 2 May 2006. They make risk to violence Constitution code 104.
When some lawers who support Taksin by using law for benificial of themselve and TRT party by double standard in reading the law, What will happen, some people that think logicly may have use civil disobedience for decent integrigrity and honour for protecting our nation, It is very dangerous and crisis time now. For the peace of nation, Taksin and cartaker carbinet should resign now because it is political dead end and dangerous to our country.
Why I do not believe in Thai Rak Thai's Megapojects Policies because there are no even intentive study, initial surveys, interim study, feasibility study, intentive design, detial designs and appraisal bill of quantity and term of references. If they do by Lumsum turn key procedure. These Megprojects will be extreme expensive cost and can not check appropriate cost, these will make opportunity for megacorruptions
Taksin's Thai Rak Thai Party and Election Commission should stop doing eveythings by waiting for three Courts declare orders.
There are not democracy election at all but only republic election because there only Thai Rak Thai Party and nominees for people to vote in this election.
Go and never return, Sleep never awake, No live again, Can not run away, for Taksin, Thai Rak Thai Party and Election Commission, damn blood suckers for corruptions.
From past information showed that Taksin would like to take over TPI by use power of his Thai rak Thai party government.
If the government leader who is ample rich that mean what he wills that the law wills for his family and his own business. He will control every things, because he have power to issue laws for his own beneficial, there are many government commission such as BOI etc., that can give benefit to his family, corporation and his party. He will command public servant do any things to him for protect him from do wrong things, because Law enforcement is his power that is the answer why Taksin want t be Prime Minister as long as he can. And want more power never ending.
Taksin government is broke. This is the reason , why Thai Rak Thai's government would like to sale government's enterprises.
For example.
The big share holders of Petroleum Authority of Thailand pty. (PTT), on 20 July 2005 close account for ad hoc meeting of share holders report 1/2005 are :
- STATE STREET BANK AND TRUST COMPANY 41,357,392 1.48
- BARCLAYS BANK PLC 35,125,000 1.26
- HSBC (SINGAPORE) NOMINEES PTE LTD 32,616,368 1.17
- NORTRUST NOMINEES LTD 26,832,736 0.96
- STATE STREET BANK AND TRUST COMPANY, FOR LONDON 24,652,899 0.88
- GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION 21,658,100 0.77
The net profit that report to SET is rapidly rising :
Year 2003 PTT had profit 22,099 Million Baht.
Year 2004 increase to 120,989 Million Bath.
Year 2005 increase to 194,539 Million Baht
About 51 % of shares belong to government, the remain belong to politician’ nominee and Singapore
Election commission think that they can do no wrong and have full power to do any things regard to Election. I do not no why they can do meetings by telephone, how to record the reports, ratify the meeting reports and is it official evidences? I assume it will be nullify and violence human rights by supporting Thai Rak Thai Party obviously.
Freelance Researcher Code 00115679 NRCT 90 UNESCO 53000