Political connection and cost of debt: Some Malaysian evidence

► Investigate association between Malaysian politically connected firms and the cost of debt. ► We provide evidence PCON firms are perceived to be riskier by lenders. ► Find PCON firms have higher leverage and more likely to report a loss. ► We provide evidence that PCON firms with CEO duality are perceived by lenders to be more risky. ► We provide evidence that PCON firms with more independent audit committees mitigate this risk.