Political Patronage on Capital Structure in Indonesia

J. Fin. Bank. Review 4 (3) 89–97 (2019)

9 Pages Posted: 6 Feb 2020

See all articles by GATR Journals Submitter

GATR Journals Submitter

Global Academy of Training and Research (GATR)

Muhammad Istan

State Institute of Islamic Studies, Curup, Bengkulu, Indonesia

Kamaludin

Bengkulu University

Date Written: December 12, 2019

Abstract

Objective – The purpose of this research is to test the theory of capital structure by determining whether the relationship is affected by Political Patronage. The study will examine political support, capital structure and financial performance of the company.

Methodology/Technique – The data in this research is in the form of financial ratios displayed in the financial report of each company listed from 2010 to 2016. The sample was selected using purposive sampling with as many as 70 companies indicated to have political support. The data was analysed using regression analysis.

Findings – The results show that Political Patronage has an influence on capital structure and political Patronage has a weak effect on financial performance.

Type of Paper – Empirical.

Keywords: Political Patronage; Capital Structure; Financial Performance

JEL Classification: G30, G32, G39

Suggested Citation

Submitter, GATR Journals and Istan, Muhammad and Kamaludin, Kamaludin, Political Patronage on Capital Structure in Indonesia (December 12, 2019). J. Fin. Bank. Review 4 (3) 89–97 (2019). Available at SSRN: https://ssrn.com/abstract=3511520

GATR Journals Submitter (Contact Author)

Global Academy of Training and Research (GATR) ( email )

Suite 15
Taman Bukit Angkasa, Kuala Lumpur 59200
Malaysia

Muhammad Istan

State Institute of Islamic Studies, Curup, Bengkulu, Indonesia ( email )

Jln.
Padang
Indonesia

Kamaludin Kamaludin

Bengkulu University ( email )

Bengkulu
Indonesia

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