How do political connection and intellectual capital affect the debt usage of majority shareholders? Evidence in Indonesia
by Adi Kurniawan Yusup; Cicilia Erna Susilawati
International Journal of Business and Emerging Markets (IJBEM), Vol. 15, No. 1, 2023

Abstract: This research intends to examine majority shareholder ownership's effect on debt moderated by political connection and intellectual capital. This study uses 747 firm-year observations of non-financial companies in Indonesia from 2018-2020. The finding shows that majority ownership has an inverted U-shape relationship on debt, but its effect is less significant in non-family firms. Political connection does not act as a moderator, while intellectual capital does only for family firms. Meanwhile, political connection and intellectual capital together alleviate majority ownership and debt relationship for both types of companies.

Online publication date: Mon, 09-Jan-2023

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