Characteristics of politically connected firms in Indonesia

Iman Harymawan, Dian Agustia, Ardyan Kusuma Agung

Research output: Contribution to journalReview articlepeer-review

8 Citations (Scopus)


This study investigates the types and characteristics of firms with politically connected directors in the boards of the company. The study uses data from all firms listed in Indonesia Stock Exchange spanning from 2004 to 2006. This study employs univariate analyses to address the research questions. The finding shows that firms with political connections are prevalence in chemical, infrastructure, investment, and miscellaneous industry. Furthermore, firm size is the only variable which significantly affects the probability of being politically connected firms. Specifically, larger firms are more likely to be politically connected. This study implies that the size of the firms is an important determinant in establishing political connections in Indonesia.

Original languageEnglish
Pages (from-to)17-23
Number of pages7
JournalProblems and Perspectives in Management
Issue number4
Publication statusPublished - 2017


  • Firm size
  • Industry studies
  • Political economy
  • Rent seeking
  • Value of the firms


Dive into the research topics of 'Characteristics of politically connected firms in Indonesia'. Together they form a unique fingerprint.

Cite this