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Cost of debt financing: Does political connection matter?

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  • Khaw, Karren Lee-Hwei
  • Zainudin, Rozaimah
  • Rashid, Rasidah Mohd

Abstract

•Impacts of political connections on cost of debt differ depending on the incentives in establishing political ties.•Executive and non-executive functions of a chairperson can be a distinctive measure to classify the underlying incentives.•PCON executive chairpersons benefit the firms, but PCON non-executive chairpersons are costly to firms.•Better corporate governance can mitigate unethical political influences and rent-seeking activities.

Suggested Citation

  • Khaw, Karren Lee-Hwei & Zainudin, Rozaimah & Rashid, Rasidah Mohd, 2019. "Cost of debt financing: Does political connection matter?," Emerging Markets Review, Elsevier, vol. 41(C).
    • Handle: RePEc:eee:ememar:v:41:y:2019:i:c:s1566014119301347
    DOI: 10.1016/j.ememar.2019.100632
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    5. Rihem Braham & Christian Peretti & Lotfi Belkacem, 2022. "On the Measurement and Extent of Banks’ Political Connection in the Middle East and North Africa Region," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(4), pages 606-645, December.
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