Political connection types and investors’ perceived risk : evidence from Malaysia
This study examines the pervasive political influence in Malaysian businesses, specifically the investors’ perceived risk of political connection. A sample of 312 firm-year observations between 2014 to 2017 reveals that politically connected Malaysian firms are less likely to be perceived as risky...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2019
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| Online Access: | http://journalarticle.ukm.my/19182/ http://journalarticle.ukm.my/19182/1/35874-118969-1-PB.pdf |
| _version_ | 1848814771127713792 |
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| author | Mas Nordiana Rusli, Norman Mohd. Saleh, Hafizuddin-Syah B.A.M., Mohamat Sabri Hassan, |
| author_facet | Mas Nordiana Rusli, Norman Mohd. Saleh, Hafizuddin-Syah B.A.M., Mohamat Sabri Hassan, |
| author_sort | Mas Nordiana Rusli, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | This study examines the pervasive political influence in Malaysian businesses, specifically the investors’ perceived risk
of political connection. A sample of 312 firm-year observations between 2014 to 2017 reveals that politically connected
Malaysian firms are less likely to be perceived as risky compared with their non-connected peers. In particular, reduction
of systematic risk in cost of equity as a proxy to perceived risk is more significant for firms connected through directorship
because political figures effectively channel substantial benefits in connecting firms under his/her political power. The
link between types of political connections and investors’ perceived risk provides a new insight and direction for research
about governance factors that affect firm risks. |
| first_indexed | 2025-11-15T00:39:22Z |
| format | Article |
| id | oai:generic.eprints.org:19182 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:39:22Z |
| publishDate | 2019 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:191822022-08-02T03:30:32Z http://journalarticle.ukm.my/19182/ Political connection types and investors’ perceived risk : evidence from Malaysia Mas Nordiana Rusli, Norman Mohd. Saleh, Hafizuddin-Syah B.A.M., Mohamat Sabri Hassan, This study examines the pervasive political influence in Malaysian businesses, specifically the investors’ perceived risk of political connection. A sample of 312 firm-year observations between 2014 to 2017 reveals that politically connected Malaysian firms are less likely to be perceived as risky compared with their non-connected peers. In particular, reduction of systematic risk in cost of equity as a proxy to perceived risk is more significant for firms connected through directorship because political figures effectively channel substantial benefits in connecting firms under his/her political power. The link between types of political connections and investors’ perceived risk provides a new insight and direction for research about governance factors that affect firm risks. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19182/1/35874-118969-1-PB.pdf Mas Nordiana Rusli, and Norman Mohd. Saleh, and Hafizuddin-Syah B.A.M., and Mohamat Sabri Hassan, (2019) Political connection types and investors’ perceived risk : evidence from Malaysia. Asian Journal of Accounting and Governance, 12 . pp. 65-76. ISSN 2180-3838 https://ejournal.ukm.my/ajac/issue/view/1225 |
| spellingShingle | Mas Nordiana Rusli, Norman Mohd. Saleh, Hafizuddin-Syah B.A.M., Mohamat Sabri Hassan, Political connection types and investors’ perceived risk : evidence from Malaysia |
| title | Political connection types and investors’ perceived risk : evidence from Malaysia |
| title_full | Political connection types and investors’ perceived risk : evidence from Malaysia |
| title_fullStr | Political connection types and investors’ perceived risk : evidence from Malaysia |
| title_full_unstemmed | Political connection types and investors’ perceived risk : evidence from Malaysia |
| title_short | Political connection types and investors’ perceived risk : evidence from Malaysia |
| title_sort | political connection types and investors’ perceived risk : evidence from malaysia |
| url | http://journalarticle.ukm.my/19182/ http://journalarticle.ukm.my/19182/ http://journalarticle.ukm.my/19182/1/35874-118969-1-PB.pdf |