Executive political connections and firm performance: Comparative evidence from privately-controlled and state-owned enterprises

•Ultimate control vs. the political connections of top executives•Whether the political influence of ownership and that of management are complements or substitutes•State holding in SOEs (state-owned enterprises) weakens board independence, but improves accounting performance.•Such effects exist in SOEs only.

This study examines the effects of ultimate control and the political connections of top executives on firm's performance and the monitoring role played by boards of directors. It investigates whether the political influence of ownership and that of management are complements or substitutes in their effects on board independence and accounting performance. The findings indicate that the state holding in SOEs (state-owned enterprises) weakens board independence, but improves accounting performance. The positive effect of a board chair's political connections on firm-level performance is only documented in SOEs.