Political connection and firm's performance among malaysian firms
The purpose of this study is to examine the influence of political connections on firms' performance by controlling the effect of board attributes and firms' characteristics. Specifically, it is argued that politically connected firms enjoy a lot of benefits from the government and said to...
Main Authors: | , , , |
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Format: | Article |
Language: | English |
Published: |
Sciedu Press,
2020
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Subjects: | |
Online Access: | View Fulltext in Publisher View in Scopus |
LEADER | 01949nam a2200217Ia 4500 | ||
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001 | 10.5430-ijfr.v11n3p146 | ||
008 | 220121s2020 CNT 000 0 und d | ||
020 | |a 19234023 (ISSN) | ||
245 | 1 | 0 | |a Political connection and firm's performance among malaysian firms |
260 | 0 | |b Sciedu Press, |c 2020 | |
650 | 0 | 4 | |a Corporate governance |
650 | 0 | 4 | |a Firm performance |
650 | 0 | 4 | |a Political connections |
856 | |z View Fulltext in Publisher |u https://doi.org/10.5430/ijfr.v11n3p146 | ||
856 | |z View in Scopus |u https://www.scopus.com/inward/record.uri?eid=2-s2.0-85088782697&doi=10.5430%2fijfr.v11n3p146&partnerID=40&md5=3e15d5f49ec927d266117b20083340b2 | ||
520 | 3 | |a The purpose of this study is to examine the influence of political connections on firms' performance by controlling the effect of board attributes and firms' characteristics. Specifically, it is argued that politically connected firms enjoy a lot of benefits from the government and said to provide greater chances for the firms to increase their wealth. By using 156 public listed firms between the study period of 2012 to 2017, this study maps out political connection based on the 13th Malaysian general election. The results reveal that the appearance of political connections on board gives significant and negative effect on Tobin Q, while significant and positive effect on Return on Asset (ROA) and Return on Equity (ROE). Board independence is also significant to firms' performance. This result implies that political connection is a favour for a better firm's performance and not to firm's value. The findings have an important implication to investors as it suggests that firms with political connection on board perform better. © 2020, Sciedu Press. | |
700 | 1 | 0 | |a Azmi, N.A. |e author |
700 | 1 | 0 | |a Sanusi, Z.M. |e author |
700 | 1 | 0 | |a Sata, F.H.A. |e author |
700 | 1 | 0 | |a Zakaria, N.B. |e author |
773 | |t International Journal of Financial Research |x 19234023 (ISSN) |g 11 3, 146-154 |