Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/27884
Title: Political connection and leverage : some Malaysian evidence
Authors: Bliss, MA 
Gul, FA
Keywords: Capital structure
Leverage ratio
Market-to-book ratio
Political connection
Issue Date: 2012
Publisher: Elsevier
Source: Journal of banking and finance, 2012, v. 36, no. 8, p. 2344-2350 How to cite?
Journal: Journal of banking and finance 
Abstract: This paper extends prior work on the linkage between politically connected (PCON) firms and capital structure in developing countries. Specifically, this paper focuses on the association between Malaysian PCON firms and leverage, and is motivated by the results of Fraser et al. (2006) who report a positive association between leverage and political patronage. Controlling for a potential misspecification in that paper, this study documents that a significant proportion (almost 12%) of the Malaysian PCON firms have negative equity, and builds on the previous paper by providing fresh evidence that market to book ratio is positively associated with leverage, and that borrowing PCON firms have significantly lower ROA compared to non-PCON firms.
URI: http://hdl.handle.net/10397/27884
ISSN: 0378-4266
EISSN: 1872-6372
DOI: 10.1016/j.jbankfin.2012.04.012
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