This study examines the impact of political connections on seasoned equity offerings. Using offerings (SEOs) from 2001 to 2018 in USA, we find that politically connected issuers enjoy a lower cost issuance than their non-connected counterparts. Our empirical evidence is robust controls for firm characteristics, corporate governance features, propensity score matching models, and an instrumental...

This study examines whether political connections are associated with earnings management (both accrual-based and real) the association is influenced by corporate governance external auditing qualities. Empirical evidence on between remains unclear offers mixed results. Using a sample of Indonesian firms, we find that negatively related to (AEM) real (REM) management. In addition, negative rela...

As the Indonesian economy went into a downward spiral in the latter half of 1997, there was much speculation and debate as to the reasons behind the sudden decline. Most explanations gave at least some role to investor panic, which had led to a massive outflow of foreign capital. At the root of this hysteria, however, were concerns that the capital that had flowed into Indonesia and elsewhere i...

This paper uses household panel data from rural Vietnam to explore the effects of having a relative in a position of political or bureaucratic power on farmers’ agricultural investment decisions. Our main result is that households significantly increase their investment in land improvement as a result of relatives moving into public office. Connections to office holders appear to be important f...

Purpose This paper aims to examine the association between political connections, uncertainty and audit fees. The authors use various measures of connections uncertainty: (civil military), events (elections) a general measure stability (i.e. world bank index). Design/methodology/approach Audit fees reflect auditors’ perceptions risk. business risk, clients’ risk after controlling for variables ...