The Mediation Effect on the Relationship Between Political Connections and Firm Value: Empirical Evidence from the Financial Industry in Indonesia

Khristina  Yunita; Mustaruddin Saleh; Wendy

doi:10.14414/tiar.1525320

Authors

Khristina Yunita Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia https://orcid.org/0009-0003-4139-5221
Mustaruddin Saleh Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia https://orcid.org/0000-0003-4913-6630
Wendy Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia https://orcid.org/0000-0002-2046-9813

DOI:

https://doi.org/10.14414/tiar.1525320

Keywords:

Political Connection, Corporate Social Responsibility, Firm Value

Abstract

This investigation explores CSR's potential mediating function in the political connection-firm value relationship. The analysis utilizes 437 annual reports from Indonesia Stock Exchange-listed financial sector corporations spanning 2014-2021. Data analysis reveals that CSR successfully mediates the political connection-firm value relationship. Additional findings demonstrate that political connections exert positive and significant effects on firm value, while CSR spending patterns differ significantly between politically connected and non-connected organizations. Robustness testing employing identical variables with alternative indicators maintains result consistency.

Author Biographies

Khristina Yunita, Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia

Dr. Khristina Yunita is an Assistant Professor in Public Sector Accounting at Tanjungpura University, Indonesia. She is a certified public accountant with expertise in both academia and professional practice, focusing on accounting and finance education, particularly in emerging markets and sustainable business practices.

Her research spans corporate governance, political economy, financial sector analysis, fraud detection, Islamic finance, SME and government accounting, and behavioral accounting. Recent work includes financial statement fraud detection, whistleblower systems, and green accounting's impact on corporate performance, with international collaborations enhancing her global contributions. ORCID ID : 0009-0003-4139-5221 SINTA ID : 6674482 Verified Email : yunita@ekonomi.untan.ac.id

Mustaruddin Saleh, Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia

Prof. Dr. Mustaruddin is a Professor of Financial Management at the Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia. With over three decades of academic service, he focuses on corporate finance and sustainability-oriented financial decision-making. His research explores the intersections of corporate finance, risk management, and sustainability performance, with recent works examining ESG disclosure, financial literacy, and green innovation in emerging markets.

Prof. Mustaruddin actively engages in community service, providing training for MSMEs and local communities. He teaches various courses in financial management and supervises undergraduate and postgraduate theses, guiding students to connect theory with practical insights. His notable contributions include publications on ESG disclosure, job stress factors, and the link between financial literacy and green economic sustainability. ORCID ID : 0000-0003-4913-6630 SINTA ID : 6030777 Verified Email : mustaruddin@ekonomi.untan.ac.id

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