Since 2014
How Corporate Political Strategies Are Related to Cost of Debt?
Indonesian Capital Market Review
View Archive Info| Field | Value | |
| Title |
How Corporate Political Strategies Are Related to Cost of Debt?
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| Creator |
Aamir Amanat; University Institute of Management Sciences – PMAS – Arid Agriculture University Rawalpindi, Pakistan
Ahmed Imran Hunjra; University Institute of Management Sciences – PMAS – Arid Agriculture University Rawalpindi, Pakistan Farhan Ahmed; Department of Economics & Management Sciences, NEDUET, Pakistan |
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| Subject |
Political connections; cost of debt; corporate political strategies; panel data
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| Description |
There are many factors, which play a vital role in the financing decisions of firms, and one of the important factors is corporate political strategies. This study examines the impact of corporate political strategies on the cost of debt of non-financial firms listed in the Pakistan Stock Exchange (PSX). Corporate political strategies are measured through political connections. We use panel data of 250 firms from 2001 to 2018. Panel regression is applied to analyze the results. This study finds corporate political strategies negatively affect the cost of debt. This study provides useful policy implications for corporate stakeholders to know the importance of political connections while making the financing decision.
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| Publisher |
Management Research Center, Department of Management, Faculty of Economics and Business, U
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| Contributor |
—
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| Date |
2020-07-23
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| Type |
—
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| Format |
application/pdf
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| Identifier |
http://journal.ui.ac.id/index.php/icmr/article/view/12187
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| Source |
Indonesian Capital Market Review; Vol 12, No 2 (2020): July 2020 (in press)
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| Language |
en
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