The Impact of Political Connections on the Performance and Solvency of Canadian Financial Institutions

Dicko, Saidatou

doi:10.5539/ijef.v8n11p1

Cited by 7 publications

(10 citation statements)

References 40 publications

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“…This finding is in line with the political benefit theory proposed by Barro (1996) that democracy has a positive effect on economic growth, especially at the level of democracy that is not yet mature and is still developing as conditions in Indonesia. The results of the study show that election political events have non-significant effect on credit growth, in line with the research results of Dicko (2016) [24], Baum and Lake (2003) [25], Maier (2002), and Moricz and Sjoholm (2014). Contrary to the results of the study by Cai (2017) [26], Pinho and Madeleno (2009) [27], Knutsen (2018) [28], Acemoglu (2019), Cole (2009), Jackowicz (2011), and Sariartha (2012).…”

Section: Resultssupporting

confidence: 86%

Influence of Political Events, Inflation, and the Exchange Rate on Credit Growth of Commercial Banks

Saputra¹,

Sudjono²,

Saluy³

2021

Proceedings of the 1st MICOSS Mercu Buana International Conference on Social Sciences, MICOSS 2020, September 28-29, 2020, Jaka

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This study aims to analyses the influence of election political events, inflation and the exchange rate on credit growth of Commercial Banks with Loan to Deposit Ratio (LDR) as a moderating variable. The research data is secondary data, quantitative, panel data obtained from observations for five years, from May 2014 to June 2019. The study population is all Commercial Banks listed on the Indonesia Stock Exchange and has never been delisted from May 2014 to June 2019 totaled 31 Conventional Commercial Banks, the research sample was 23 banks using the purposive sampling method. Data analysis using panel data regression Least Square Dummy Variable with 1426 observations. The results of the study found that there was a positive and non-significant effect of election political events on credit growth, a positive and significant effect of inflation on credit growth, and a negative and nonsignificant effect of the rupiah exchange rate on credit growth. Simultaneous testing, there is a significant influence of the three independent variables on the loan growth dependent variable, while testing by including the LDR moderating variable, there is a positive and non-significant effect of the LDR on the influence of the independent variables on the dependent variable.

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Section: Resultssupporting

confidence: 86%

Influence of Political Events, Inflation, and the Exchange Rate on Credit Growth of Commercial Banks

Saputra¹,

Sudjono²,

Saluy³

2021

Proceedings of the 1st MICOSS Mercu Buana International Conference on Social Sciences, MICOSS 2020, September 28-29, 2020, Jaka

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“…Firms can develop these relationships using PAC contributions, lobbying, gifts, and revolving door appointments (Goldman et al, 2013;Dicko, 2016;Gurakar & Bircan, 2016;Ferris et al, 2019). Dicko (2016) uses 2SLS to demonstrate Canadian firms that appoint more politically connected individuals to their board experience subsequent increases in government contracts. Ferris et al (2019) demonstrate that PAC connections and lobbying expenditure are associated with subsequent increases in the volume of federal contracts.…”

Section: Contractor Defaultmentioning

confidence: 99%

“…Politically connected firms enjoy more extensive and favorable relations with politicians. Firms can develop these relationships using PAC contributions, lobbying, gifts, and revolving door appointments (Goldman et al., 2013; Dicko, 2016; Gurakar & Bircan, 2016; Ferris et al., 2019). Dicko (2016) uses 2SLS to demonstrate Canadian firms that appoint more politically connected individuals to their board experience subsequent increases in government contracts.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Contractor default: Predictions, politics, and penalties in the procurement process

Ferris

Hanousek

Houston

2021

Ann Public Coop Econ

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In this study, we provide an analysis of federal contractor default. We examine both the predictability and the consequences of contractor default. We discover that a firm's political contributions, size, sales derived from government contracts, and primary industry concentration are positively related to default, while the average quality of firm contracts and liquidity are negatively related to default. Production of a product rather than service delivery, the number of modifications, and the requirement of a subcontractor are positively related to contract default. Department of Defense contracts and the use of commercial item procedures are negatively related to default. Defaulting firms tend to receive smaller contracts after default. To mitigate possible punishment, defaulting firms increase their political contributions, especially to congressional candidates.

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“…Jika terdapat setidaknya terdapat satu anggota dari dewan komisaris atau dewan direksi suatu perusahaan dimana juga menjabat sebagai pejabat misalnya presiden atau wakil, menteri atau pejabat setingkat dengan menteri, anggota militer dan polisi, anggota DPR/MPR/DPD, ketua partai politik, yang masih aktif ataupun yang sudah tidak aktif (Ligita & Muazaroh, 2020) atau merupakan pejabat aktif pemerintahan (Dicko, 2016) serta yang memiliki pengalaman bekerja pada lembaga pemerintah (Yao, 2015) maka perusahaan tersebut dapat dikatakan merupakan perusahaan yang terhubung secara politik. Hubungan politik diukur dengan persentase total anggota dewan komisaris dan total anggota dewan direksi yang memiliki hubungan politik dibandingkan dengan total keseluruhan anggota dewan komisaris dan anggota dewan direksi suatu perusahaan.…”

Section: Hubungan Politikunclassified

Pengaruh kepemilikan negara, hubungan politik dan penghindaran pajak terhadap kinerja keuangan di Indonesia

Ivone

Tinamo

2021

INOVASI: Jurnal Ekonomi, Keuangan dan Manajemen

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Penelitian ini ditujukan untuk menelaah dampak dari kepemilikan negara, hubungan politik dan penghindaran pajak terhadap kinerja keuangan pada perusahaan yang tercatat di Bursa Efek Indonesia (BEI) pada 2016-2020. Dalam penelitian ini digunakan metode regresi linear berganda pada data panel untuk menguji hubungan setiap variabel independen terhadap variabel dependen. Dengan menggunakan 165 perusahaan yang tercatat di BEI yang memenuhi kriteria sampel. Dalam penelitian ini kepemilikan negara diproksikan dengan jumlah kepemilikan saham negara Republik Indonesia, hubungan politik yang diukur dengan jumlah komisaris dan direksi terhubung politik, serta penghindaran pajak yang diukur dengan Cash ETR merupakan variabel independen. Rasio ROA, dan ROE digunakan dalam penelitian ini untuk mengukur kinerja perusahaan yang merupakan variabel dependen. Dalam penelitian ini didapatkan suatu keseimpulan bahwa kepemilikan negara berdampak signifikan positif te rhadap ROE namun berdampak tidak signifikan terhadap ROA. Hubungan politik yang diukur dengan jumlah komisaris terhubung politik berdampak signifikan negatif terhadap ROA tetapi berdampak tidak signifikan terhadap ROE, sedangkan untuk jumlah direksi terhubung politik memiliki dampak tidak signifikan pada kinerja keuangan. Untuk variabel penghindaran pajak berdampak tidak signifikan terhadap kinerja keuangan. Kata Kunci: Kepemilikan negara; hubungan politik; penghindaran pajak; kinerja keuangan The effect of state ownership, political relations and tax avoidance on financial performance in Indonesia

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The Impact of Political Connections on the Performance and Solvency of Canadian Financial Institutions

Cited by 7 publications

References 40 publications

Influence of Political Events, Inflation, and the Exchange Rate on Credit Growth of Commercial Banks

Influence of Political Events, Inflation, and the Exchange Rate on Credit Growth of Commercial Banks

Contractor default: Predictions, politics, and penalties in the procurement process

Pengaruh kepemilikan negara, hubungan politik dan penghindaran pajak terhadap kinerja keuangan di Indonesia

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