Family Firms, Political Connections, and Managerial Shorth-Termism

Iman Harymawan and Amalia Rizki and Mohammad Nasih and Amalia Kusuma Dewi (2020) Family Firms, Political Connections, and Managerial Shorth-Termism. Journal of Security and Sustainability Issues, 9 (J). pp. 186-202. ISSN 2029-7017, eISSN 2029-7025

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Official URL: https://jssidoi.org/jssi/papers/papers/view/452

Abstract

This study investigates the relationship between firms with family ownership and managerial short-termism and how political connections affect this relationship. The final sample of this study is 959 firms year observations of non-financial firms listed on Indonesia Stock Exchange (IDX) between year 2014 to 2016. We find that firms with lower family ownership are more likely to be engaged in short-termism. With the increase of family ownership, family firms better preserve its future well-being and, therefore, are freed from managerial short-termism. Interestingly, we find that political connections moderating the family firms to become short-termism regardless the level of family ownership. These findings imply that the level of family ownership affect the firms’s decision on research and development and political connections are able to make family firms to be more short-termism.

Item Type: Article
Uncontrolled Keywords: family firms, managerial short-termism, political connection
Subjects: H Social Sciences
H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation > HG4551-4598 Stock exchanges
J Political Science
Divisions: 04. Fakultas Ekonomi dan Bisnis > Akuntansi
Creators:
CreatorsNIM
Iman HarymawanNIDN0020048403
Amalia RizkiNIDN0012047602
Mohammad NasihNIDN0006086503
Amalia Kusuma DewiNIM041411331246
Depositing User: Tn Sugeng Riyanto
Date Deposited: 11 Oct 2020 14:50
Last Modified: 11 Oct 2020 14:50
URI: http://repository.unair.ac.id/id/eprint/99889
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