Political connection and firm value

• Main Authors: ANG, James S., DING, David K., THONG, Tiong Yang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: political connection; corporate governance; firm value; Singapore; Asian Studies; Business Law, Public Responsibility, and Ethics; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3601; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4600/viewcontent/PoliticalConnectionFirmValue_2013_pv.pdf
• Institution: Singapore Management University

We study the effect of political connection (PC) on company value in an environment where low PC is due to better institutions and not confounded by favorable social/cultural factors. We find that in Singapore, the only country that fits this description, PC in general adds little to the value of a...