Political connections, opaque financial reports and stock price synchronicity
by Lukas Purwoto; Eduardus Tandelilin; Mamduh M. Hanafi
J. for Global Business Advancement (JGBA), Vol. 15, No. 2, 2022

Abstract: From the perspective of corporate governance, stock price synchronicity can be understood as a lack of disclosure. This study investigates the effect of political connections, government ownership, and the opacity of financial reporting on the stock price synchronicity of public companies in Indonesia. Our analysis shows that political connections and government ownership increase stock price synchronicity. The synchronicity of stock prices is also positively affected by the opacity of financial reports. Furthermore, when the opacity of financial reports increases, the influence of political connections and government ownership on stock price synchronicity tends to increase. These results imply that political ties impede disclosure of firm-specific information, and poor quality of financial reporting exacerbates this impediment.

Online publication date: Wed, 04-Jan-2023

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the J. for Global Business Advancement (JGBA):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com