Page 227 - 33-2

NTU Management Review Vol. 33 No. 2 Aug. 2023

SPREAD) is a dependent variable representing the difference between government-
controlled banks' loans and risk-free interest rates.
spread after presidential elections
1. The effect of corporate political donations on government-controlled bank loan rate

spread after presidential elections
spread after presidential elections

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2. The
effect of firms' donations to the winner of the presidential election on the
2. The effect of firms’ donations to the winner of the presidential election on the
2. The effect of firms' donations to the winner of the presidential election on the
government-controlled bank loans rate spread after presidential elections
government-controlled bank loans rate spread after presidential elections

government-controlled bank loans rate spread after presidential elections

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3. Findings ���

3. Findings
3. Findings
As mentioned earlier, this study utilizes Heckman (1979) two-stage model for

its analysis. In the first stage, we control the determinants affecting corporate political
As mentioned earlier, this study utilizes Heckman (1979) two-stage model for its
donations and the choice between long-term and short-term loan contracts. In the second
analysis. In the first stage, we control the determinants affecting corporate political
As mentioned earlier, this study utilizes Heckman (1979) two-stage model for its
stage, the empirical results reveal that firms that make political donations or donate to the
donations and the choice between long-term and short-term loan contracts. In the
analysis. In the first stage, we control the determinants affecting corporate political
presidential candidate winner get lower bank loan interest rates from the government-
second stage, the empirical results reveal that firms that make political donations or
donations and the choice between long-term and short-term loan contracts. In the
controlled bank after the elections. Furthermore, this study discovers that firms engaged
second stage, the empirical results reveal that firms that make political donations or
donate to the presidential candidate winner get lower bank loan interest rates from the
in political donations obtain lower bank loan interest rates on medium-term or long-term
donate to the presidential candidate winner get lower bank loan interest rates from the
government-controlled bank after the elections. Furthermore, this study discovers that
government-controlled bank loan contracts.
government-controlled bank after the elections. Furthermore, this study discovers that
firms engaged in political donations obtain lower bank loan interest rates on medium-
firms engaged in political donations obtain lower bank loan interest rates on medium-
term or long-term government-controlled bank loan contracts.

term or long-term government-controlled bank loan contracts.
219
4. Limitations
4. Limitations

(1) This study only focuses on corporate political donations during the presidential
elections because after the implementation of Personal Data Protection Act, information
(1) This study only focuses on corporate political donations during the presidential
elections because after the implementation of Personal Data Protection Act, information
48

48