How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.]

Azmi, Nurul Azlin and Zakaria, Nor Balkish and Abd Sata, Fazrul Hanim and Mohd Sanusi, Zuraidah and Busirin, Mohd Fazrin (2019) How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.]. In: The 6th International Accounting & Business Conference 2019. Secretariat of IABC 2019, 6th . UiTM Cawangan Johor, Segamat Johor, p. 94.

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Abstract

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 benefit 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 give 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 connections are favour for a better firm’s performance and not to firm’s value. The findings have an important implication to investors as it suggest that firms with political connection on board perform better.

Metadata

Item Type: Book Section
Creators:
Creators
Email
Azmi, Nurul Azlin
UNSPECIFIED
Zakaria, Nor Balkish
UNSPECIFIED
Abd Sata, Fazrul Hanim
UNSPECIFIED
Mohd Sanusi, Zuraidah
UNSPECIFIED
Busirin, Mohd Fazrin
UNSPECIFIED
Contributors:
Contribution
Name
Email / ID Num.
Patron
Kassim, Mohd Azraai
UNSPECIFIED
Patron
Joyosumarto, Subarjo
UNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Organizational effectiveness. Performance measurement
Divisions: Universiti Teknologi MARA, Johor > Segamat Campus
Series Name: Secretariat of IABC 2019
Volume: 6th
Page Range: p. 94
Item ID: 39059
Uncontrolled Keywords: Political connections; Firm performance; UiTM Cawangan Johor
URI: https://ir.uitm.edu.my/id/eprint/39059

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39059

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