경영위기와 기업의 정치적 활동 그리고 기업성과

Management Crisis, Corporate Political Activity, and Firm Performance: A Comparative Study of The Transitional Economy and Global Economic Environment

Purpose - Although many may believe that corporate political activity (CPA) improves companies’ performance, previous studies have not consistently validated this assumption. This study sought to observe the effectiveness of CPA through its relationship to management crises and firm performance, seeking to reveal a clearer relationship between CPA and performance. Design/Methodology/Approach - We investigated the relationship between CPA and performance on a set of 184 KOSPI and KOSDAQ firms from 1998 to 2017, finding that companies use CPA strategies to escape management crises and develop new performance through it. Additionally, we compared the two periods from 1998 to 2007 (transitional economic environment) and from 2008 to 2017 (global economic environment) to observe the dynamic relationship between strategy and performance. Findings - Comparative analysis demonstrated that the relationship between management crises, CPA, and firm performance was positive in the transitional economic environment, whereas CPA had a negative effect on firm performance in the global economic environment. Research Implications - The study contributes to explaining the mixedresults of previous research on CPA and firm performance. In particular, itsuggests that the impact of CPA on firm performance may vary depending on the economic circumstances.