Journal of International Conference Proceedings
Vol 6, No 6 (2023): 2023 WIMAYA Yogyakarta Proceeding

Political Connection Effect towards Firm Value

Hadi, Johanes De Brito Firstian (Unknown)
Yulianti, Retno (Unknown)
Hastuti, Sri (Unknown)



Article Info

Publish Date
13 Dec 2023

Abstract

Political Connection, or the connection that a firm have to the government, can be an interesting subject for accounting research. Political connection can give advantage to the firm. This study wants to determine the effect of existing political connection in a firm to the firm value. Political connection as the independent variable is measured by using dummy variable. While firm value as the dependent variable will be measured by Tobin’s Q. The data that are used in this study are secondary data of mining firms listed on the Indonesian Stock Exchange in 2017-2022 and also stock price information from Indonesian stock exchange website. In this study, purposive sampling is used where 37 mining firms are selected. The result of the study indicate that political connection does not have a significant impact on mining firms value. Thus, this study emphasize that investors have less interest on making political connection that mining firms have as a value.

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Journal Info

Abbrev

JICP

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Electrical & Electronics Engineering Industrial & Manufacturing Engineering Languange, Linguistic, Communication & Media

Description

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