Governance Under Influence

The book focuses on governance issues, through the lens of political connections in corporate Europe. Sustainability in corporate contexts increasingly hinges on the quality of governance—the “G” in ESG—which serves as the backbone for how firms integrate environmental (“E”), social (“S”), and economic sustainability objectives into their strategies and operations. Effective governance frameworks are essential not only for ensuring compliance and accountability, but also for aligning long-term value creation with broader societal and environmental goals. Political connections are a key factor influencing governance structures and decision-making processes, shaping how firms address challenges such as climate risk, social equity, and responsible resource use. These connections can also provide firms with preferential access to credit markets, easing financial constraints that would otherwise hinder investment in sustainable initiatives.

Spanning the period from the fall of the Berlin Wall to the European sovereign debt crisis, this first of two volumes offers a systematic and comparative analysis of political connections across four major economies: Italy, France, Germany, and the United Kingdom. Each chapter investigates the evolving nature of political ties, their impact on corporate behavior, and their implications for firm performance and value creation. Combining theoretical discussion with empirical evidence, the book develops a comprehensive framework for understanding how political connections operate as a distinct feature of corporate governance. It offers valuable insights for scholars, policymakers, and practitioners interested in corporate sustainability, political economy, and institutional governance in Europe.

Carlo Bellavite Pellegrini is Full Professor of Banking and Finance at the Catholic University of the Sacred Heart, Milan. His research interests include banking and finance, corporate governance, ESG and sustainability, law and finance, political connections, and corporate histories of banks and corporations.

Laura Pellegrini is Associate Professor of Financial Intermediaries at the University of Bergamo, Italy. She teaches Investments, Sustainable Finance, and Financial Markets and Instruments. Her research focuses on corporate governance, corporate finance, ESG, sustainable finance, political connections, and financial stability.

Andrea Roncella is Assistant Professor of Corporate Finance at the Catholic University of the Sacred Heart, Milan. His research interests include corporate finance, corporate governance, sustainable finance, business ethics, and business and society.