Firm Value and Firm Performance With Political Connections

• Author(s): Susi Susilawati ; Zulham Efendi ; Maria Suryaningsih
• Paper ID: 1703178
• Page: 7-16
• Published Date: 04-02-2022
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 5 Issue 8 February-2022

Abstract

This study aims to determine whether there is an empirical study of the effect of political connection and ownership structure on the company's financial performance and its impact on firm value where the long-term goal of the company is to maximize firm value. The population of this study comes from the financial statements of LQ-45 companies listed on the Indonesia Stock Exchange in 2014-2018. The sampling method used in this study was a purposive sampling method. The data analysis used is panel data regression through the model selection test, and the indirect effect is processed using the Sobel Test. The results show that political connection, ownership structure has a significant negative effect on the company's financial performance. Company financial performance, political connection, ownership structure has a significant positive effect on firm value. The political connection has an insignificant negative effect, ownership structure has a significant negative effect on firm value through company’s financial performance.

Keywords

Political Connection, Ownership Structure, Firm Performance, Firm Value.

Citations

IRE Journals:
Susi Susilawati , Zulham Efendi , Maria Suryaningsih "Firm Value and Firm Performance With Political Connections " Iconic Research And Engineering Journals Volume 5 Issue 8 2022 Page 7-16

IEEE:
Susi Susilawati , Zulham Efendi , Maria Suryaningsih "Firm Value and Firm Performance With Political Connections " Iconic Research And Engineering Journals, 5(8)