POLITICAL CONNECTION, FOREIGN INSTITUTIONAL INVESTORS AND TUNNELING: EVIDENCE FROM INDONESIA

Q2 Business, Management and Accounting
E. Nuraina, M. Nasih, Dian Agustia
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引用次数: 0

Abstract

The purpose of this study is to examine the moderating effect of foreign institutional investors on the relationship between political connection and tunneling. To achieve this goal, our study has examined all companies listed on the Indonesia Stock Exchange between 2015 and 2019, and obtained 1,571 firm-year observations. By using a quantitative approach and data analysis using moderated regression analysis, the results of this study indicate that foreign institutional investors play a role in weakening political connections to tunneling. This shows that foreign institutional investors have a role in reducing tunneling. These investors influence the behavior and performance of the company, so, even though the company has political ties, foreign institutional investors are less susceptible to political pressure and are more likely to negotiate to enhance the interests of minority shareholders, and protect their reputations. This finding has important implications for regulators to consider when evaluating the Investor Protection Act, in particular the protection of minority shareholder rights in companies with political ties.
政治关系、外国机构投资者和挖地道:来自印尼的证据
本研究的目的是考察外国机构投资者对政治联系与隧道效应之间关系的调节作用。为了实现这一目标,我们的研究调查了2015年至2019年间在印度尼西亚证券交易所上市的所有公司,并获得了1571个公司年度的观察结果。通过使用定量方法和使用适度回归分析的数据分析,本研究的结果表明,外国机构投资者在削弱与隧道的政治联系方面发挥了作用。这表明,外国机构投资者在减少隧道掘进方面发挥了作用。这些投资者影响着公司的行为和业绩,因此,即使公司有政治联系,外国机构投资者也不太容易受到政治压力的影响,更有可能通过谈判来提高少数股东的利益,保护他们的声誉。这一发现对监管机构在评估《投资者保护法》时,特别是对有政治关系的公司中少数股东权利的保护具有重要意义。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Business: Theory and Practice
Business: Theory and Practice Business, Management and Accounting-Strategy and Management
CiteScore
5.00
自引率
0.00%
发文量
35
审稿时长
8 weeks
期刊介绍: The journal "Business: Theory and Practice" is published from 2000. 1 vol (4 issues) per year are published. Articles in Lithuanian, English, German, Russian. The Journal has been included into database "ICONDA" and "Business Source Complete".
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