Curtin University Homepage
  • Library
  • FAQ
    • Log in

    espace - Curtin’s institutional repository

    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item

    Ownership structure, political connection and firm performance: Evidence from Indonesia

    Access Status
    Fulltext not available
    Authors
    Rusmin, R.
    Evans, John
    Hossain, M.
    Date
    2012
    Collection
    • Curtin Research Publications
    Type
    Journal Article
    Metadata
    Show full item record
    Abstract

    This paper investigates whether ownership structure and high levels of political connection in Indonesian firm's impacts on firm performance. Studying ownership structure in Indonesia is interesting for a number of reasons. Firstly, companies in Indonesia are owned by the families and corporate ownership structure is largely concentrated. Secondly, many companies in Indonesia have connections with politicians. Thirdly, little work has been done in Indonesia on the impact of foreign ownership on performance. Thus foreign ownership provides a unique setting for examining the monitoring role of foreign ownership as a substitute for corporate board monitoring. Using both accounting and market measures of firm performance we find that Indonesian firms with high political connections outperform Indonesian firms not politically aligned. Firms with significant foreign ownership performed better than domestic only owned firms. The results of the study support the findings that the governance of the largest government and foreign ownership firms not only acts to monitor management activities but also plays a representative role for monitoring shareholders.

    Citation
    Rusmin, R. and Evans, J. and Hossain, M. 2012. Ownership structure, political connection and firm performance: Evidence from Indonesia. Corporate Ownership and Control. 10 (1 E,CONT4): pp. 434-443.
    Source Title
    Corporate Ownership and Control
    URI
    http://hdl.handle.net/20.500.11937/36683
    Department
    School of Accounting

    Related items

    Showing items related by title, author, creator and subject.

    • Ownership structure, political connection and firm performance: Evidence from Indonesia
      Rusmin, Rusmin; Evans, John; Hossain, Mahmud (2012)
      This paper investigates whether ownership structure and high levels of political connection in Indonesian firm’s impacts on firm performance. Studying ownership structure in Indonesia is interesting for a number of reasons. ...
    • The effect of board composition on firm performance in Indonesia
      Prabowo, Muhammad Agung (2010)
      The study investigates the effect of the compositions of board of directors on firm performance in Indonesia. This country offers a specific institutional environment, which provides a natural setting to further examine ...
    • Ownership structure and firm performance: the case of Indonesia
      Lukviarman, Niki (2004)
      This study looks at the relationship between ownership structure, monitoring and firm performance. The research employed the agency theory hypothesised by Jensen and Meckling (1976) from the view of contractual relationships ...
    Advanced search

    Browse

    Communities & CollectionsIssue DateAuthorsTitlesSubjectsDocument TypesThis CollectionIssue DateAuthorsTitlesSubjectsDocument Types

    My Account

    Log in

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Connect with Curtin

    • 
    • 
    • 
    • 
    • 
    • 
    • 

    CRICOS Provider Code: 00301JABN: 99 143 842 569TEQSA: PRV12158

    Send FeedbackContact Us
    DSpace software copyright © 2002-2015  DuraSpace