THE IMPACT OF POLITICAL CONNECTION ON SHARE PERFORMANCE IN ASEAN COUNTRIES: CRITICAL REVIEW

The relationship between politics and the share market has always been a global concern and extensively debated in academic disciplines such as management studies, finance, accounting, business, economics, and social sciences. The effects of this relationship have yet to be generalized as guidance for stakeholders such as investors, shareholders, companies, and governments. Therefore, this study aims to critically review existing literature on the impact of the political relationship on share performance in the share markets of three ASEAN countries (Malaysia, Thailand, and Indonesia). Specifically, this research will assess the theoretical and empirical aspects of the relationship between politics and share performance to identify existing gaps for future studies. This study has identified several crucial aspects from theoretical, operational, measurement, contextual, and methodological perspectives in empirical research. Moreover, the results of previous literature have not yet been generalized to a broader context, sector, and population. Furthermore, this study has proposed various research avenues to facilitate a deeper understanding of the relationship between politics and share performance. Based on this study, it can be concluded that previous research findings on the relationship between politically connected firms and share performance are still inconclusive and inconsistent. Finally, the implications of this study for policy, theory, and practice are discussed.