Sebelas Maret Business Review
Vol 3, No 2 (2018): December 2018

Political Connection and Firm Value in Indonesia

Versiandika Yudha Pratama (Universitas Sebelas Maret)
Doddy Setiawan (Universitas Sebelas Maret)



Article Info

Publish Date
30 Aug 2019

Abstract

This is an event study aims to determine the influence of political connections to firm value as measured by cumulative abnormal return on non-financial sector companies listed in Indonesia Stock Exchange. This study used secondary data in the form of stock price and annual financial statement obtained the Indonesia Stock Exchange website, Indonesian Capital Market Directory, and other relevant sources. In sampling technique, purposive sampling method is used where 272 non-financial sector companies are selected. The data is examined by using multiple linear regression to measure the influence of political connections on firm value. The findings of this study revealed that political connections have an effect on firm value as measured by cumulative abnormal return on non-financial sector companies listed in Indonesia Stock Exchange.

Copyrights © 2018






Journal Info

Abbrev

SMBR

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

SMBR publishes both empirical and non-empirical (contextual, descriptive, case-study) articles emphasizing on the recent business issues nationally or internationally. To cope with the current advancement of publishing world especially in academic journal article, SMBR follows the modern-style of ...