Political connections and firm performance: evidence from the mobile industry in Indonesia Online publication date: Fri, 22-Dec-2023
by Arniati Arniati; An An Chiu; Shaio Yan Huang; Ching-Wen Lin
International Journal of Mobile Communications (IJMC), Vol. 23, No. 1, 2024
Abstract: This study investigates whether political connections in the mobile industry are associated with performance. The mobile industry is a restricted business in Indonesia, where the rules for business entry and business operations are abundant, such as operational licences, tariffs, and implementation policies. The study expects that mobile firms with political connections perform better than those without political connections. The results indicate the different impacts of political connections on firm performance, measured by ROA and Tobin's Q. The study also finds different results in political connections and performances on a family-owned mobile company and a non-family-owned mobile company, including SOE. Moreover, the study investigates different forms of political connections including companies, government or military, politicians, and parliament. The study suggests that the multiple political connection types have different effects on firm performances.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
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 International Journal of Mobile Communications (IJMC):
Login with your Inderscience username and 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
Our Blog 
Follow us on Twitter 
Visit us on Facebook