Indonesian Capital Market Review
Vol. 12, No. 2

How Corporate Political Strategies Are Related to Cost of Debt?

Amanat, Aamir (Unknown)
Hunjra, Ahmed Imran (Unknown)
Ahmed, Farhan (Unknown)



Article Info

Publish Date
30 Jul 2020

Abstract

There are many factors, which play a vital role in the financing decisions of firms, and one of the important factors is corporate political strategies. This study examines the impact of corporate political strategies on the cost of debt of non-financial firms listed in the Pakistan Stock Exchange (PSX). Corporate political strategies are measured through political connections. We use panel data of 250 firms from 2001 to 2018. Panel regression is applied to analyze the results. This study finds corporate political strategies negatively affect the cost of debt. This study provides useful policy implications for corporate stakeholders to know the importance of political connections while making the financing decision.

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Journal Info

Abbrev

publication:icmr

Publisher

Subject

Economics, Econometrics & Finance

Description

The intent of the Editors of The Indonesian Capital Market Review is to discuss, to explore, and to disseminate the latest issues and developments in Empirical Financial Economics particularly those related to financial frictions in the Emerging Markets. The topics cover capital markets, financial ...