How does the presidential election period affect the performance of the state-owned enterprise in Indonesia?

This study investigates the differences between the SOEs and non-SOEs financial performance and how the presidential election affects their performance. This study uses 3,716 firm-year observations for firms listed on the Indonesian Stock Exchange from 2001 to 2014 as the final sample and uses regre...

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Autores principales:	Iman Harymawan, Mohammad Nasih, Novrys Suhardianto, Elvia Shauki
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	election firm performance political connections state-owned enterprises Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/1e6b1f0fbde74db8a45009715f32d703
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spelling	oai:doaj.org-article:1e6b1f0fbde74db8a45009715f32d7032021-12-02T18:21:51ZHow does the presidential election period affect the performance of the state-owned enterprise in Indonesia?2331-197510.1080/23311975.2020.1750330https://doaj.org/article/1e6b1f0fbde74db8a45009715f32d7032020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1750330https://doaj.org/toc/2331-1975This study investigates the differences between the SOEs and non-SOEs financial performance and how the presidential election affects their performance. This study uses 3,716 firm-year observations for firms listed on the Indonesian Stock Exchange from 2001 to 2014 as the final sample and uses regression to test the hypotheses. In Indonesia, on average, about 25 parties involved in the presidential election in the past three elections. Due to the complexity of the data collection, this study omits the effect of the unique political parties that also could affect the performance of SOE. This study finds that SOEs outperform financial performance of non-SOEs over the sample periods. Interestingly, this study also finds that the excellent financial performance of SOEs disappears around the election period. It indicates that being a board member of state-owned enterprises (SOEs) is a political position rather than a professional position. For policymakers, these results indicate that election periods influence (reduce) the financial performance of SOEs in Indonesia. This study enhances our understanding of how presidential elections affect the performance of SOEs in Indonesia.Iman HarymawanMohammad NasihNovrys SuhardiantoElvia ShaukiTaylor & Francis Grouparticleelectionfirm performancepolitical connectionsstate-owned enterprisesBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	election firm performance political connections state-owned enterprises Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	election firm performance political connections state-owned enterprises Business HF5001-6182 Management. Industrial management HD28-70 Iman Harymawan Mohammad Nasih Novrys Suhardianto Elvia Shauki How does the presidential election period affect the performance of the state-owned enterprise in Indonesia?
description	This study investigates the differences between the SOEs and non-SOEs financial performance and how the presidential election affects their performance. This study uses 3,716 firm-year observations for firms listed on the Indonesian Stock Exchange from 2001 to 2014 as the final sample and uses regression to test the hypotheses. In Indonesia, on average, about 25 parties involved in the presidential election in the past three elections. Due to the complexity of the data collection, this study omits the effect of the unique political parties that also could affect the performance of SOE. This study finds that SOEs outperform financial performance of non-SOEs over the sample periods. Interestingly, this study also finds that the excellent financial performance of SOEs disappears around the election period. It indicates that being a board member of state-owned enterprises (SOEs) is a political position rather than a professional position. For policymakers, these results indicate that election periods influence (reduce) the financial performance of SOEs in Indonesia. This study enhances our understanding of how presidential elections affect the performance of SOEs in Indonesia.
format	article
author	Iman Harymawan Mohammad Nasih Novrys Suhardianto Elvia Shauki
author_facet	Iman Harymawan Mohammad Nasih Novrys Suhardianto Elvia Shauki
author_sort	Iman Harymawan
title	How does the presidential election period affect the performance of the state-owned enterprise in Indonesia?
title_short	How does the presidential election period affect the performance of the state-owned enterprise in Indonesia?
title_full	How does the presidential election period affect the performance of the state-owned enterprise in Indonesia?
title_fullStr	How does the presidential election period affect the performance of the state-owned enterprise in Indonesia?
title_full_unstemmed	How does the presidential election period affect the performance of the state-owned enterprise in Indonesia?
title_sort	how does the presidential election period affect the performance of the state-owned enterprise in indonesia?
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/1e6b1f0fbde74db8a45009715f32d703
work_keys_str_mv	AT imanharymawan howdoesthepresidentialelectionperiodaffecttheperformanceofthestateownedenterpriseinindonesia AT mohammadnasih howdoesthepresidentialelectionperiodaffecttheperformanceofthestateownedenterpriseinindonesia AT novryssuhardianto howdoesthepresidentialelectionperiodaffecttheperformanceofthestateownedenterpriseinindonesia AT elviashauki howdoesthepresidentialelectionperiodaffecttheperformanceofthestateownedenterpriseinindonesia
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How does the presidential election period affect the performance of the state-owned enterprise in Indonesia?

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