POLITICALLY CONNECTED BANKS: SOME INDONESIAN EVIDENCE
International Journal of Business and Society
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Title |
POLITICALLY CONNECTED BANKS: SOME INDONESIAN EVIDENCE
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Creator |
Sutopo, Bambang
Trinugroho, Irwan Damayanti, Sylviana Maya |
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Description |
We investigate the impact of being politically connected on bank performance and cost of funding. We study 89 Indonesian banks over the 2001-2008 period disentangled into politically connected banks which can be state-owned banks and private banks as well as non-politically connected banks. Controlling for bank fundamental factors and time effect, we do find that political connections improve bank performance. Moreover, our results provide evidence that politically connected banks are benefited by getting a lower cost of funding. Finally, our result reveals that political connections are less valuable for foreign banks. Keywords: Political Connections; Performance; Cost of Funding; Foreign Banks; Indonesia.
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Publisher |
Faculty of Economics and Business, UNIMAS
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Date |
2017-11-17
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://publisher.unimas.my/ojs/index.php/IJBS/article/view/491
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Source |
International Journal of Business and Society; Vol 18 No 1 (2017): International Journal of Business and Society
1511-6670 |
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Language |
eng
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Relation |
http://publisher.unimas.my/ojs/index.php/IJBS/article/view/491/431
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Rights |
Copyright (c) 2017 International Journal of Business and Society
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