How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.]
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 gre...
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| Main Authors: | , , , , |
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| Format: | Book Section |
| Language: | en |
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UiTM Cawangan Johor
2019
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| Online Access: | https://ir.uitm.edu.my/id/eprint/39059/1/39059.pdf https://ir.uitm.edu.my/id/eprint/39059/ |
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| _version_ | 1833066062903508992 |
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| author | Azmi, Nurul Azlin Zakaria, Nor Balkish Abd Sata, Fazrul Hanim Mohd Sanusi, Zuraidah Busirin, Mohd Fazrin |
| author2 | Md Kassim, Fazdilah |
| author_facet | Md Kassim, Fazdilah Azmi, Nurul Azlin Zakaria, Nor Balkish Abd Sata, Fazrul Hanim Mohd Sanusi, Zuraidah Busirin, Mohd Fazrin |
| author_sort | Azmi, Nurul Azlin |
| building | Tun Abdul Razak Library |
| collection | Institutional Repository |
| content_provider | Universiti Teknologi Mara |
| content_source | UiTM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | 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. |
| format | Book Section |
| id | my.uitm.ir-39059 |
| institution | Universiti Teknologi Mara |
| language | en |
| publishDate | 2019 |
| publisher | UiTM Cawangan Johor |
| record_format | eprints |
| spelling | my.uitm.ir-390592020-12-24T05:53:59Z https://ir.uitm.edu.my/id/eprint/39059/ How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.] Azmi, Nurul Azlin Zakaria, Nor Balkish Abd Sata, Fazrul Hanim Mohd Sanusi, Zuraidah Busirin, Mohd Fazrin Organizational effectiveness. Performance measurement 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. UiTM Cawangan Johor Md Kassim, Fazdilah Ratan Singh, Deepak Singh M Ramakrishnan, Kamalanathan Sumery, Zuraidah Sarijari, Haniza Mohd Yusof, Fairuz Husna Amat, Dia Widyawati Kamaludin, Puteri Nur Hidayah Daud, Derwina 2019 Book Section PeerReviewed text en https://ir.uitm.edu.my/id/eprint/39059/1/39059.pdf How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.]. (2019) In: The 6th International Accounting & Business Conference 2019. Secretariat of IABC 2019, 6th . UiTM Cawangan Johor, Segamat Johor, p. 94. IABC2019-083 IABC2019-083 |
| spellingShingle | Organizational effectiveness. Performance measurement Azmi, Nurul Azlin Zakaria, Nor Balkish Abd Sata, Fazrul Hanim Mohd Sanusi, Zuraidah Busirin, Mohd Fazrin How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.] |
| title | How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.] |
| title_full | How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.] |
| title_fullStr | How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.] |
| title_full_unstemmed | How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.] |
| title_short | How well does political connection affect firms’ performance? / Nurul Azlin Azmi ...[et al.] |
| title_sort | how well does political connection affect firms’ performance? / nurul azlin azmi ...[et al.] |
| topic | Organizational effectiveness. Performance measurement |
| url | https://ir.uitm.edu.my/id/eprint/39059/1/39059.pdf https://ir.uitm.edu.my/id/eprint/39059/ |
| url_provider | http://ir.uitm.edu.my/ |