Characteristics of Politically Connected Firms in Indonesia

Problems and Perspective in Management, Vol. 15(4), 17-23, 2017. doi:10.21511/ppm.15(4).2017.02

8 Pages Posted: 21 Apr 2020

See all articles by Iman Harymawan

Iman Harymawan

Universitas Airlangga

Dian Agustia

affiliation not provided to SSRN

Ardyan Kusuma Agung

affiliation not provided to SSRN

Date Written: December 14, 2014

Abstract

This study investigates the types and characteristics of firms with politically connected directors in the boards of the company. The study uses data from all firms listed in Indonesia Stock Exchange spanning from 2004 to 2006. This study employs univariate analyses to address the research questions. The finding shows that firms with political connections are prevalence in chemical, infrastructure, investment, and miscellaneous industry. Furthermore, firm size is the only variable which significantly affects the probability of being politically connected firms. Specifically, larger firms are more likely to be politically connected. This study implies that the size of the firms is an important determinant in establishing political connections in Indonesia.

Keywords: rent seeking, political economy, industry studies, firm size, value of the firms

JEL Classification: D72, P16, L70, L25, G32

Suggested Citation

Harymawan, Iman and Agustia, Dian and Agung, Ardyan Kusuma, Characteristics of Politically Connected Firms in Indonesia (December 14, 2014). Problems and Perspective in Management, Vol. 15(4), 17-23, 2017. doi:10.21511/ppm.15(4).2017.02, Available at SSRN: https://ssrn.com/abstract=3561499

Iman Harymawan (Contact Author)

Universitas Airlangga ( email )

JL. Airlangga no 4
Surabaya, East Java 60286
Indonesia

HOME PAGE: http://www.feb.unair.ac.id

Dian Agustia

affiliation not provided to SSRN

Ardyan Kusuma Agung

affiliation not provided to SSRN

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
5
Abstract Views
82
PlumX Metrics