We examine how political events influence the performance and behaviour of politically connected firms. We focus on the time-varying aspects of political ties over a reasonably long time horizon in countries where these ties are prevalent. Our analysis pays special attention on countries that experienced instances of political instability in the recent past as the time series variations in political conditions will allow us to examine the effect of political connections, while controlling for potentially unobserved differences in corporate and political actors. The expected findings of our study should provide important contributions to the existing literature on the effect of time-varying political ties on firm value and information quality. In sum, our research agenda is geared towards contributing to the broad question of how a country’s political environment affects its economic development and the performance of the private (but potentially connected) sector.