Market reactions to financial distress announcements: do political connections matter?
We examined market reactions to the financial distress announcements of listed firms in Malaysia. We investigated whether the market differentiates between the politically connected and non-politically connected vis-a-vis the outcomes at the time of the announcements. There is evidence of differing...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Cogent
2018
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| Online Access: | https://repo.uum.edu.my/id/eprint/25615/1/CEF%206%201%202018%201%208.pdf |
| _version_ | 1803628968978415616 |
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| author | Ahmad, Abd Halim @ Hamilton Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham |
| author_facet | Ahmad, Abd Halim @ Hamilton Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham |
| author_sort | Ahmad, Abd Halim @ Hamilton |
| collection | UUM |
| description | We examined market reactions to the financial distress announcements of listed firms in Malaysia. We investigated whether the market differentiates between the politically connected and non-politically connected vis-a-vis the outcomes at the time of the announcements. There is evidence of differing reactions to announcements by politically connected and non-connected firms. Investors react more negatively to the non-politically connected firms as compared to the politically connected ones.In addition, in the event of emergence from financial distress, the losses of politically connected firms were lower than for the non-politically connected firms. |
| first_indexed | 2024-07-04T06:30:24Z |
| format | Article |
| id | uum-25615 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:30:24Z |
| publishDate | 2018 |
| publisher | Cogent |
| record_format | dspace |
| spelling | uum-256152019-02-24T00:03:18Z https://repo.uum.edu.my/id/eprint/25615/ Market reactions to financial distress announcements: do political connections matter? Ahmad, Abd Halim @ Hamilton Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham HC Economic History and Conditions We examined market reactions to the financial distress announcements of listed firms in Malaysia. We investigated whether the market differentiates between the politically connected and non-politically connected vis-a-vis the outcomes at the time of the announcements. There is evidence of differing reactions to announcements by politically connected and non-connected firms. Investors react more negatively to the non-politically connected firms as compared to the politically connected ones.In addition, in the event of emergence from financial distress, the losses of politically connected firms were lower than for the non-politically connected firms. Cogent 2018 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25615/1/CEF%206%201%202018%201%208.pdf Ahmad, Abd Halim @ Hamilton and Abdullah, Nur Adiana Hiau and Taufil Mohd, Kamarun Nisham (2018) Market reactions to financial distress announcements: do political connections matter? Cogent Economics & Finance, 6 (1). pp. 1-8. ISSN 2332-2039 http://doi.org/10.1080/23322039.2018.1483304 doi:10.1080/23322039.2018.1483304 doi:10.1080/23322039.2018.1483304 |
| spellingShingle | HC Economic History and Conditions Ahmad, Abd Halim @ Hamilton Abdullah, Nur Adiana Hiau Taufil Mohd, Kamarun Nisham Market reactions to financial distress announcements: do political connections matter? |
| title | Market reactions to financial distress announcements: do political connections matter? |
| title_full | Market reactions to financial distress announcements: do political connections matter? |
| title_fullStr | Market reactions to financial distress announcements: do political connections matter? |
| title_full_unstemmed | Market reactions to financial distress announcements: do political connections matter? |
| title_short | Market reactions to financial distress announcements: do political connections matter? |
| title_sort | market reactions to financial distress announcements do political connections matter |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/25615/1/CEF%206%201%202018%201%208.pdf |
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