How do political connection and intellectual capital affect the debt usage of majority shareholders? Evidence in Indonesia

Adi Kurniawan Yusup and Cicilia Erna Susilawati

International Journal of Business and Emerging Markets, 2023, vol. 15, issue 1, 34-52

Abstract: This research intends to examine majority shareholder ownership's effect on debt moderated by political connection and intellectual capital. This study uses 747 firm-year observations of non-financial companies in Indonesia from 2018-2020. The finding shows that majority ownership has an inverted U-shape relationship on debt, but its effect is less significant in non-family firms. Political connection does not act as a moderator, while intellectual capital does only for family firms. Meanwhile, political connection and intellectual capital together alleviate majority ownership and debt relationship for both types of companies.

Keywords: majority shareholder ownership; debt; political connection; intellectual capital; Indonesia. (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=128160 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbema:v:15:y:2023:i:1:p:34-52

Access Statistics for this article

More articles in International Journal of Business and Emerging Markets from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().