The effect of the gain and loss of political connections on firm performance : evidence from the coup in Thailand in 2006

รายงานผลการวิจัย เรื่อง การได้มาและการสูญเสียความสัมพันธ์ทางการเมืองที่มีต่อผลประกอบการของบริษัท : เหตุการณ์จากการปฏิวัติในประเทศไทยในปี 2549

Name: Thitima Sitthipongpanich

Organization : Dhurakijpundit University. Faculty of Business Administration

ThaSH: Business and politics -- Research

Classification :.DDC: 322.3

Abstract: This research investigates the role and impact of political connections in the context of concentrated ownership, family firms and weak law enforcement in Thailand. Using a large-sample analysis, the presence of political connections is investigated from 1998 to 2007, classified into the pre-election (1998-2000), appointment period of Thaksin as Prime Minister (2001-2004), decline-coup (2005-2007) periods. Political connections are defined by family ownership of the former Prime Minister Thaksin Shniawatra, of ministers in the Thaksin's government in a period of 2001-2004, of the Thai Rak Thai party's members and of the Thai Rak Thai Party's financial donators. The results show that the industry adjusted return on assets between connected and non-connected firms are different between 2004 (the rising year of the Thaksin's government) and 2007 (after the military coup event). Connected firms have higher market-adjusted cumulative abnormal returns (CARs) than non-connected firms in the military coup year of 2006. The findings imply that the presence of political connection is significant and the performance of connected firms decreases as a result of the loss of political connections. In addition, the role and development of connections are explored using a unique case study of the former Thai Prime Minister family firms in the telecommunications industry. The findings show that the Shinawatra's personal relations with politicians and his ministerial posts. Connections were evidently beneficial for the family business group's expansion since its establishment. When the Shinawatra family firms gain connections with the government and obtain government privileges, their CARs are higher than CARs of other firms in the industry. As a result of the loss of connections, the market to book ratio of firms that belong to the the Shinawatra family is lower than of other firms in the same industry in the decline-coup period. Furthermore, the leverage ratio of the Shinawatra family firms is higher than that of other firms in the crisis period, but lower in the appointment period. The results imply that firms of the Shinawatra family obtain an easier access to external funds when the Thai financial market is financially-constrained. In the appointment period, they may generate sufficient cash flow for their investment, or obtain an easy access to equity financing as an alternative source of external funds.

Dhurakijpundit University

Address: Bangkok

Email: library@dpu.ac.th

Name: Dhurakijpundit University

Role: ผู้ให้ทุนวิจัย

Created: 2009

Modified: 2553-02-15

Issued: 2553-02-15

งานวิจัย/Research report

application/pdf

CallNumber: 322.3 T448e

tha

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ลำดับที่.	ชื่อแฟ้มข้อมูล	ขนาดแฟ้มข้อมูล	จำนวนเข้าถึง	วัน-เวลาเข้าถึงล่าสุด
1	Cover.pdf	2.58 MB	39	2023-06-07 12:53:56
2	ABS.pdf	2.27 MB	36	2019-08-20 23:10:54
3	Chap_1.pdf	4.97 MB	42	2018-05-23 20:17:39
4	Chap_2.pdf	4.07 MB	45	2019-12-10 12:40:39
5	Chap_3.pdf	5.77 MB	18	2019-12-10 12:41:35
6	Chap_4.pdf	22.37 MB	21	2019-07-18 14:47:26
7	Chap_5.pdf	24.69 MB	25	2020-02-22 10:45:26
8	Chap_6.pdf	3.84 MB	34	2019-10-01 12:26:41
9	App-bip.pdf	3.11 MB	24	2019-10-01 12:26:03
10	App.pdf	2.16 MB	26	2018-05-23 20:18:10
11	Vita.pdf	726.69 KB	15	2018-05-23 20:18:11

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