On the challenge to competitive authoritarianism and political patronage in Malaysia
Anders Johansson ()
Asian-Pacific Economic Literature, 2015, vol. 29, issue 2, 47-67
type="main"> In March 2008, Malaysia's political landscape was shaken by election results showing that the Barisan Nasional had won less than two thirds of the parliamentary seats and lost five states to the opposition. A two-thirds supermajority had been seen as a sacred threshold for the coalition to ensure its continued legitimacy. It is conjectured here that the 2008 election represented a challenge to the competitive authoritarian regime and that this had direct effects on firms with ties to the ruling coalition. The empirical results show that firms with political patronage were indeed adversely affected by the electoral outcome. More specifically, firms with close ties to the Barisan Nasional experienced a significant negative value effect. Firms characterised by political patronage also saw their leverage reduced significantly more than other firms after the 2008 election, suggesting that their access to debt capital had become more restricted. Moreover, this effect was mainly driven by changes in long-term debt. These results suggest a significant negative impact on connected firms as the political status quo was challenged in Malaysia.
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: On the Challenge to Competitive Authoritarianism and Political Patronage in Malaysia (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:apacel:v:29:y:2015:i:2:p:47-67
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0818-9935
Access Statistics for this article
Asian-Pacific Economic Literature is currently edited by Ron Duncan
More articles in Asian-Pacific Economic Literature from Asia Pacific School of Economics and Government, The Australian National University
Series data maintained by Wiley-Blackwell Digital Licensing ().