ADMIRALTY SAAVIRA AL CHOLILI, 041511333117 (2019) POLITICAL CONNECTIONS, OVERINVESTMENT, AND GOVERNANCE MECHANISM IN INDONESIA. Skripsi thesis, Universitas Airlangga.
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Abstract
This research is the pioneer study to examine the political connections and overinvestment in Indonesia as a democratic developing country with mixed economy system. By using samples of 1,044 and 543 firm-year observations from listed firms on the Indonesian Stock Exchange from 2012 to 2017, this study also extends the literature on political connection by assessing the role of governance mechanisms. A two-stage model is used to address overinvestment which used two types of measurement at the first place, then continued to establish the main analysis on the second stage. There are two findings in this study. First, the relationship of political connections and overinvestment in Indonesia is significantly negative. Second, this negative relationship between political connections and overinvestment will increase in accordance with governance mechanism from both external and internal parties of the firm, resulting in lower overinvestment. Those results indicate that there are different benefits of political connections which can affect the incentives of firms with political connections in different ways. This study also enhances the effectiveness of governance mechanism in mitigating the detrimental effect of overinvestment.
| Item Type: | Thesis (Skripsi) | ||||||
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| Additional Information: | KKB KK A 141/19 Cho p | ||||||
| Uncontrolled Keywords: | Overinvestment, Political connections, Government mechanism | ||||||
| Subjects: | J Political Science > JZ International relations > JZ5-6530 International relations > JZ4835-5490 International organizations and associations > JZ4841-4848 Political non governmental organizations. NGOs | ||||||
| Divisions: | 04. Fakultas Ekonomi dan Bisnis > Akuntansi | ||||||
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| Depositing User: | Unnamed user with email indah.fatma@staf.unair.ac.id | ||||||
| Date Deposited: | 19 Jun 2019 09:35 | ||||||
| Last Modified: | 19 Jun 2019 09:35 | ||||||
| URI: | http://repository.unair.ac.id/id/eprint/83408 | ||||||
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