Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5091421 | Journal of Banking & Finance | 2006 | 18 Pages |
Abstract
This paper extends prior work on the links between political patronage and capital structure in developing economies. Three proxies of political patronage are developed and applied to a group of Malaysian firms over a 10-year period. We find a positive and significant link between leverage and each of the three measures of political patronage. We also find evidence of an indirect link between political patronage and capital structure through firm size and profitability.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Donald R. Fraser, Hao Zhang, Chek Derashid,