The association between cost of debt and Hong Kong politically connected firms

Bliss, Mark A. and Goodwin, John and Gul, Ferdinand A. and Wong, Anson (2018) The association between cost of debt and Hong Kong politically connected firms. Journal of Contemporary Accounting and Economics, 14 (3). pp. 321-334. ISSN 1815-5669

[thumbnail of The_association_between_cost_of_debt_and_Hong_Kong_politically_connec__Goodwin.pdf] PDF
Restricted to Registered users only

Download (149kB) | Request a copy


This paper investigates the association between Hong Kong politically connected (PCON) firms and their cost of debt and find these firms are associated with significantly lower interest rates being charged by lenders compared to other (non-PCON) firms. We compare our results with earlier investigations of Malaysian and U.S. PCON firms and find that our results are consistent with the results of the U.S. but inconsistent with that of Malaysia. Our results suggest that the economic wealth, the extent of political power, and the pervasiveness of firms having political connections could account for the cross-country differences between the cost of debt and PCON firms.
Item Type: Article
Uncontrolled Keywords: Political connection; Debt cost
Divisions: Sabancı Business School
Sabancı Business School > Accounting and Finance
Depositing User: John Goodwin
Date Deposited: 08 Aug 2019 15:52
Last Modified: 06 Jun 2023 14:22

Actions (login required)

View Item
View Item