Political connections, opaque financial reports and stock price synchronicity
From the perspective of corporate governance, stock price synchronicity can be understood as a lack of disclosure. This study investigates the effect of political connections, government majority ownership, and the opacity of financial statements on the stock price synchronicity of public companies...
| Main Authors: | , , |
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| Format: | Other |
| Language: | English |
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J. Global Business Advancement
2022
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| Online Access: | https://repository.ugm.ac.id/279055/1/Mamduh%20M.%20Hanafi.pdf |
| _version_ | 1826050371338895360 |
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| author | Purwoto, Lukas Tandelilin, Eduardus Hanafi, Mamduh M. |
| author_facet | Purwoto, Lukas Tandelilin, Eduardus Hanafi, Mamduh M. |
| author_sort | Purwoto, Lukas |
| collection | UGM |
| description | From the perspective of corporate governance, stock price synchronicity can be understood as a lack of disclosure. This study investigates the effect of political connections, government majority ownership, and the opacity of financial statements on the stock price synchronicity of public companies in Indonesia. Our analysis shows that political connections and government ownership increase stock price synchronicity. Synchronicity is also positively affected by the opacity of financial statements. Furthermore, when the opacity of financial statements increases, the influence of political connections and government ownership on stock price synchronicity tends to increase. These results imply that political ties impede disclosure of firm-specific information, and poor quality of financial statement exacerbates this impediment. Keywords: stock price synchronicity; firm-specific information; political connections; government ownership; the opacity of financial statements. |
| first_indexed | 2024-03-14T00:02:55Z |
| format | Other |
| id | oai:generic.eprints.org:279055 |
| institution | Universiti Gadjah Mada |
| language | English |
| last_indexed | 2024-03-14T00:02:55Z |
| publishDate | 2022 |
| publisher | J. Global Business Advancement |
| record_format | dspace |
| spelling | oai:generic.eprints.org:2790552023-11-09T07:44:34Z https://repository.ugm.ac.id/279055/ Political connections, opaque financial reports and stock price synchronicity Purwoto, Lukas Tandelilin, Eduardus Hanafi, Mamduh M. From the perspective of corporate governance, stock price synchronicity can be understood as a lack of disclosure. This study investigates the effect of political connections, government majority ownership, and the opacity of financial statements on the stock price synchronicity of public companies in Indonesia. Our analysis shows that political connections and government ownership increase stock price synchronicity. Synchronicity is also positively affected by the opacity of financial statements. Furthermore, when the opacity of financial statements increases, the influence of political connections and government ownership on stock price synchronicity tends to increase. These results imply that political ties impede disclosure of firm-specific information, and poor quality of financial statement exacerbates this impediment. Keywords: stock price synchronicity; firm-specific information; political connections; government ownership; the opacity of financial statements. J. Global Business Advancement 2022 Other NonPeerReviewed application/pdf en https://repository.ugm.ac.id/279055/1/Mamduh%20M.%20Hanafi.pdf Purwoto, Lukas and Tandelilin, Eduardus and Hanafi, Mamduh M. (2022) Political connections, opaque financial reports and stock price synchronicity. J. Global Business Advancement. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85147831689&doi=10.1504%2fJGBA.2018.10047723&partnerID=40&md5=614c5b2a90d8b9f6d3687501ce4a0319 10.1504/JGBA.2018.10047723 |
| spellingShingle | Purwoto, Lukas Tandelilin, Eduardus Hanafi, Mamduh M. Political connections, opaque financial reports and stock price synchronicity |
| title | Political connections, opaque financial reports and stock price synchronicity |
| title_full | Political connections, opaque financial reports and stock price synchronicity |
| title_fullStr | Political connections, opaque financial reports and stock price synchronicity |
| title_full_unstemmed | Political connections, opaque financial reports and stock price synchronicity |
| title_short | Political connections, opaque financial reports and stock price synchronicity |
| title_sort | political connections opaque financial reports and stock price synchronicity |
| url | https://repository.ugm.ac.id/279055/1/Mamduh%20M.%20Hanafi.pdf |
| work_keys_str_mv | AT purwotolukas politicalconnectionsopaquefinancialreportsandstockpricesynchronicity AT tandelilineduardus politicalconnectionsopaquefinancialreportsandstockpricesynchronicity AT hanafimamduhm politicalconnectionsopaquefinancialreportsandstockpricesynchronicity |