Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7356970 | Journal of Contemporary Accounting & Economics | 2018 | 14 Pages |
Abstract
We test whether the channel by which the government plays the role of political patron to selected firms influences analysts' forecast precision in Malaysia. Correcting for analysts' self-selection bias, we find a negative relation between analysts' forecast errors and the social dimension of political patronage, as proxied by government-controlled institutional ownership. The reverse is found for the economic dimension of political patronage, as proxied by the percentage shareholding of government-linked corporations. We find no evidence that the personal dimension of political patronage influences analysts' forecast precision.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business, Management and Accounting (General)
Authors
Effiezal Aswadi Abdul Wahab, Janice How, Jason Park, Peter Verhoeven,