Proceedings of the 4th International Conference on Accounting, Management, and Economics, ICAME 2019, 25 October 2019, Makassar, Indonesia

Research Article

Predicting Financial Distress and Financial Performance Using Political Connection

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  • @INPROCEEDINGS{10.4108/eai.25-10-2019.2295391,
        author={Ramly  Ramly and Sitti  Haerani and Yohanes  Rura and Syarifuddin  Rasyid},
        title={Predicting Financial Distress and Financial Performance Using Political Connection},
        proceedings={Proceedings of the 4th International Conference on Accounting, Management, and Economics, ICAME 2019, 25 October 2019, Makassar, Indonesia},
        publisher={EAI},
        proceedings_a={ICAME},
        year={2020},
        month={6},
        keywords={financial performance financial distress political connection},
        doi={10.4108/eai.25-10-2019.2295391}
    }
    
  • Ramly Ramly
    Sitti Haerani
    Yohanes Rura
    Syarifuddin Rasyid
    Year: 2020
    Predicting Financial Distress and Financial Performance Using Political Connection
    ICAME
    EAI
    DOI: 10.4108/eai.25-10-2019.2295391
Ramly Ramly1,*, Sitti Haerani1, Yohanes Rura1, Syarifuddin Rasyid1
  • 1: Hasanuddin University
*Contact email: abdullah.ramly@yahoo.co.id

Abstract

The purpose of this study is to investigate the relationship between financial performance and financial distress with political connections. This study examines (1) the relationship between political connections to financial distress (2) the relationship between political connections to financial performance. The research location is on the Indonesia Stock Exchange (IDX) using all secondary data in the property and real estate sector. Sampling was done purposively and produced 40 observational data for 2014-2017. Data analyzed using linear regression. The results showed a negative relationship between financial distress and political connections and, likewise, a negative result between financial performance and political connections.