Political connections and stock price crash risk: Empirical evidence from the fall of Suharto

doi:10.3390/ijfs7030049

Details of Research Outputs

Title	Political connections and stock price crash risk: Empirical evidence from the fall of Suharto
Creator	Harymawan，Iman 1; Lam，Brian 2; Nasih，Mohammad 1; Rumayya，Rumayya 3
Date Issued	2019
Source Publication	International Journal of Financial Studies
Volume	7 Issue:3
Abstract	This study examines the relationship between firm-level political connections and stock price crash risk in Indonesia. It employs the difference-in-difference design to deal with the self-selection bias issue regarding the choice of the firms to become a politically connected firm. We use the sudden resignation of the former President of Indonesia, Suharto, to show that politically connected firms are associated with lower stock price crash risk and that the risk for these politically connected firms increased after Suharto resigned. Furthermore, we found evidence that these negative associations are more pronounced in firms with more complex firm structures.
Keyword	Complex firm structure Politically connected firms Stock price crash risk
DOI	10.3390/ijfs7030049
URL	View source
Language	英语English
Scopus ID	2-s2.0-85073338353
Citation statistics	Cited Times:7[WOS] [WOS Record] [Related Records in WOS]
Document Type	Journal article
Identifier	http://repository.uic.edu.cn/handle/39GCC9TT/6262
Collection	Beijing Normal-Hong Kong Baptist University
Corresponding Author	Harymawan，Iman
Affiliation	1.Department of Accountancy,Universitas Airlangga,Surabaya,60286,Indonesia 2.Division of Business and Management,BNU-HKBU United International College,Zhuhai,519087,China 3.Department of Economics,Universitas Airlangga,Surabaya,60286,Indonesia
Recommended Citation GB/T 7714	Harymawan，Iman,Lam，Brian,Nasih，Mohammadet al. Political connections and stock price crash risk: Empirical evidence from the fall of Suharto[J]. International Journal of Financial Studies, 2019, 7(3).
APA	Harymawan，Iman, Lam，Brian, Nasih，Mohammad, & Rumayya，Rumayya. (2019). Political connections and stock price crash risk: Empirical evidence from the fall of Suharto. International Journal of Financial Studies, 7(3).
MLA	Harymawan，Iman,et al."Political connections and stock price crash risk: Empirical evidence from the fall of Suharto". International Journal of Financial Studies 7.3(2019).

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