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keywordCOVID-19 resource typedepartmental bulletin paper school経済学部
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Performance of politically connected banks during the COVID-19 pandemic in Indonesia
Yamaguchi journal of economics, business administrations & laws Volume 69 Issue 6
This research aims to examine the relationship between political connections and bank performance during the COVID-19 pandemic in Indonesia, with data sample comprising banks listed on the Indonesia Stock Exchange (IDX). The study employed a panel data linear regression and found an insignificant positive influence of political connections on banks' profitability. However, the result also indicates marginally lower profitability in politically connected banks compared to non-connected peers, and the event-study methodology reveals the tendency for affiliated banks to obtain substantial negative abnormal returns during the pandemic. Therefore, there is a negative effect of COVID-19 on stock performance of politically connected banks.
Creators : Budi Wahyono Publishers : The economic society of Yamaguchi University Date Issued : 2021-03-31
Creators : Asamizu Munehiko | Yao Boyi | Zhou Wenting Publishers : 山口大學經濟學會 Date Issued : 2020-07-31