Hubungan Antara BUMD dan Koneksi Politik di Indonesia: Suatu Telaah Pustaka
Keywords:
BUMD, Political Connections, PAD
Abstract
This article aims to reveal the relationship between Regional Owned Enterprises (BUMD) and political connections in the regions. BUMD was formed with clear objectives, one of which is to become a source of Regional Original Income (PAD). However, in practice, BUMD's activities are heavily influenced by external factors that make BUMD's performance worse. One of the external factors is the political power in an area. This article is a theoretical concept that will reveal the relationship between BUMD and political connections through a literature review. The research method used is qualitative. The conclusion of the study shows that regional political connections have a negative influence on company performance.
References
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Amdanata, D. D., & Mansor, N. (2018). Do Political Connections Affect The Performance of Indonesian Regional Development Banks? International Journal of Accounting, Finance and Business, 3(12), 109–118.
Atkinson, A. B., & Stiglitz, J. E. (1980). Lectures on Public Economics. New York: McGraw-Hill.
Atmadja, A. P. S. (2014). Aktualisasi Hukum Keuangan Publik. (Y. Indrawati, Ed.). Bandung: Mujahid Press.
Baum, J. A. C., & Oliver, C. (1991). Institutional Linkages and Organizational Mortality. Administrative Science Quarterly, 36(2), 187–218.
Boubakri, N., Cosset, J. C., & Saffar, W. (2008). Political Connections of Newly Privatized Firms. Journal of Corporate Finance, 14, 654–673. https://doi.org/10.1016/j.jcorpfin.2008.08.003
Cheema, M. U., Munir, R., & Su, S. (2016). Political Connections and Organisational Performance: Evidence from Pakistan. International Journal of Accounting & Information Management, 24(4), 321–338. https://doi.org/http://dx.doi.org/10.1108/MRR-09-2015-0216
Chen, Y., Luo, D., & Li, W. (2014). Political Connections, Entry Barriers, and Firm Performance. Chinese Management Studies, 8(3), 473–486. https://doi.org/10.1108/MBE-09-2016-0047
Chen, Y. S., Shen, C. H., & Lin, C. Y. (2014). The Benefits of Political Connection: Evidence from Individual Bank-Loan Contracts. Journal of Financial Services Research, 45, 287–305. https://doi.org/10.1007/s10693-013-0167-1
Claessens, S., Feijen, E., & Laeven, L. (2008). Political Connections and Preferential Access to Finance: The role of Campaign Contributions. Journal of Financial Economics, 88, 554–580. https://doi.org/10.1016/j.jfineco.2006.11.003
Faccio, M. (2006). Politically Connected Firms. The American Economic Review, 96(1), 369–386. https://doi.org/10.1257/000282806776157704
Faccio, M. (2010). Differences between Politically Connected and Non-Connected Firms : A Cross Country Analysis. Financial Management, 39(3), 905–927.
Faccio, M., Masulis, R. W., & McConnell, J. J. (2006). American Finance Association Political Connections and Corporate Bailouts. The Journal of Finance, 61(6), 2597–2635. https://doi.org/10.1111/j.1540-6261.2006.01000.x
Feng, F., Sun, Q., & Tong, W. H. S. (2004). Do Government-Linked Companies Underperform? Journal of Banking and Finance, 28, 2461–2492. https://doi.org/10.1016/j.jbankfin.2003.10.012
Ferguson, T., & Voth, H. J. (2008). Betting on Hitler - The value of political connections in Nazi Germany. Quarterly Journal of Economics, 123(1), 101–137. https://doi.org/10.1162/qjec.2008.123.1.101
Fisman, R. (2001). Estimating the Value of Political Connections. The American Economic Review, 91(4), 1095–1102.
Goldman, E., Rocholl, J., & So, J. (2009). Do Politically Connected Boards Affect Firm Value. Review of Financial Studies, 22(6), 2331–2360. https://doi.org/10.1093/rfs/hhn088
Gomez, E. T., Padmanabhan, T., Kamaruddin, N., Bhalla, S., & Fisal, F. (2017). Minister of Finance Incorporated: Ownership and Control of Corporate Malaysia. Springer.
Hamid, A. A. (2011). Network Governance in Government-Linked Companies (GLCs) and Non-Government-Linked Companies (NGLCs) in Malaysia. Journal of Financial Reporting and Accounting, 9(1), 54–73. https://doi.org/10.1108/MBE-09-2016-0047
Harefa, M. (2010). Pengelolaan BUMD/Perusahaan Daerah di Provinsi Sumatera Barat, Nusa Tenggara Barat dan Kalimantan Selatan. Kajian, 15(2), 199–226.
Hillman, A. J. (2005). Politicians on the Board of Directors : Do Connections Affect the Bottom Line ? Journal of Management, 31(3), 464–481. https://doi.org/10.1177/0149206304272187
Hillman, A. J., Keim, G. D., & Schuler, D. (2004). Corporate Political Activity : A Review and Research Agenda. Journal of Management, 30(6), 837–857. https://doi.org/10.1016/j.jm.2004.06.003
Holida, F., & Suryadi, H. (2012). Pengaruh Good Corporate Governance Terhadap Kinerja Perusahaan. Jurnal Demokrasi & Otonomi Daerah, 10(1), 1–26.
Hung, M., Kim, Y., & Li, S. (2018). Political Connections and Voluntary Disclosure: Evidence from Around the World. Journal of International Business Studies, 49(2), 272–302. https://doi.org/10.1057/s41267-017-0139-z
Ibrahim, J. (2006). Teori dan Metodologi Penelitian Normatif. Malang: Bayumedia Publishinng.
Ismail, W. A. W., Kamarudin, K. A., & Othman, R. (2012). Assessment of Earnings Conservatism in Government-Linked Companies. Procedia - Social and Behavioral Sciences, 65, 650–655. https://doi.org/10.1016/j.sbspro.2012.11.179
Johnson, S., & Mitton, T. (2003). Cronyism and Capital: Evidence from Malaysia. Journal of Financial Economics, 67, 351–382. https://doi.org/10.1017/CBO9781107415324.004
Lester, R. H., Hillman, A., Zardkoohi, A., & Cannella-JR., A. A. (2008). Former Government Officials As Outside Directors: The Role of Human and Social Capital. Academy of Management Journal, 51(5), 999–1013.
Li, H., Meng, L., Wang, Q., & Zhou, L. A. (2008). Political Connections, Financing and Firm Performance: Evidence from Chinese Private Firms. Journal of Development Economics, 87, 283–299. https://doi.org/10.1016/j.jdeveco.2007.03.001
Mak, Y. T., & Li, Y. (2001). Determinants of Corporate Ownership and Board Structure: Evidence from Singapore. Journal of Corporate Finance, 7, 235–256. https://doi.org/10.1016/S0929-1199(01)00021-9
Ming, T. C., & Lee, C. L. (2014). Board Structure and Firm Performance: Some Evidence from Malaysian Government Linked Companies. Corporate Ownership and Control, 12(1), 345–351. https://doi.org/10.22495/cocv12i1c3p4
Nurdhiana, & Bodroastuti, T. (2014). Peran Audit Internal dalam Penerapan Good Corporate Governance pada Badan Usaha Milik Negara Provinsi Jawa Tengah. Dinamika Akuntansi, Keuangan Dan Perbankan, 3(2), 114–128.
OECD. (2015). OECD Guidelines on Corporate Governance of State-Owned Enterprises. OECD.
Pina, V., Torres, L., & Bachiller, P. (2016). Political Influence and the Performance of Nonprofit Spanish Banks. Nonprofit Management & Leadership, 26(4), 471–488. https://doi.org/10.1002/nml
Redding, K. S., Xie, E., & Tang, Q. (2018). Institutionalization to Internationalization: the Transformational Dynamics and Outward Foreign Direct Investment of State-Owned Enterprises. International Journal of Public Sector Management, 31(2), 241–264.
Said, J., & Jaafar, N. H. B. (2014). Accountability in Government Linked Companies: An Empirical Finding. Procedia - Social and Behavioral Sciences, 145, 294–299. https://doi.org/10.3923/ibm.2015.460.469
Sapienza, P. (2004). The Effects of Government Ownership on Bank Lending. Journal of Financial Economics, 72, 357–384. https://doi.org/10.1016/j.jfineco.2002.10.002
Sauqi, Y. R., & Albintani, M. (2013). Tinjauan Ekonomi Politik Badan Usaha Milik Daerah. Jurnal Demokrasi & Otonomi Daerah, 11(2), 71–143.
Selznick, P. (1953). TVA and the Grass Roots: A Study in the Sociology of Formal Organization. Barkeley and Los Angeles: University of California Press.
Su, Z., Fung, H., & Yau, J. (2013). Political Connections and Corporate Overinvestment: Evidence from China. International Journal of Accounting and Information Management, 21(4), 285–296. https://doi.org/10.1108/IJAIM-02-2013-0006
Sutedi, A. (2012). Hukum Keuangan Negara. Jakarta: Sinar Grafika.
Ting, I. W. K., & Lean, H. H. (2011). Capital Structure of Government-Linked Companies in Malaysia. Asian Academy of Management Journal of Accounting and Finance, 7(2), 137–156. https://doi.org/10.1166/asl.2015.5944
Widjajanti, K. (2012). A Study Performance in Regional Government–Owned Enterprises Indonesia. In International Proceedings of Economics Development and Research (Vol. 48, pp. 130–133). https://doi.org/10.7763/IPEDR.
Wong, W.-Y., & Hooy, C.-W. (2018). Do Types of Political Connection Affect Firm Performance Differently? Pacific-Basin Finance Journal, 51, 297–317. https://doi.org/10.1016/j.pacfin.2018.08.009
Wu, W., Wu, C., Zhou, C., & Wu, J. (2012). Political connections, tax benefits and firm performance: Evidence from China. Journal of Accounting and Public Policy, 31(3), 277–300. https://doi.org/10.1016/j.jaccpubpol.2011.10.005
Xin, K. R., & Pearce, J. L. (1996). Connections as substitutes for formal institutional support. Academy of Management Journal, 39(6), 1641–1658.
Zhou, K. Z., Gao, G. Y., & Zhao, H. (2016). State Ownership and Firm Innovation in China: An Integrated View of Institutional and Efficiency Logics. Administrative Science Quarterly, 62. https://doi.org/10.1177/0001839216674457
Amdanata, D. D., & Mansor, N. (2018). Do Political Connections Affect The Performance of Indonesian Regional Development Banks? International Journal of Accounting, Finance and Business, 3(12), 109–118.
Atkinson, A. B., & Stiglitz, J. E. (1980). Lectures on Public Economics. New York: McGraw-Hill.
Atmadja, A. P. S. (2014). Aktualisasi Hukum Keuangan Publik. (Y. Indrawati, Ed.). Bandung: Mujahid Press.
Baum, J. A. C., & Oliver, C. (1991). Institutional Linkages and Organizational Mortality. Administrative Science Quarterly, 36(2), 187–218.
Boubakri, N., Cosset, J. C., & Saffar, W. (2008). Political Connections of Newly Privatized Firms. Journal of Corporate Finance, 14, 654–673. https://doi.org/10.1016/j.jcorpfin.2008.08.003
Cheema, M. U., Munir, R., & Su, S. (2016). Political Connections and Organisational Performance: Evidence from Pakistan. International Journal of Accounting & Information Management, 24(4), 321–338. https://doi.org/http://dx.doi.org/10.1108/MRR-09-2015-0216
Chen, Y., Luo, D., & Li, W. (2014). Political Connections, Entry Barriers, and Firm Performance. Chinese Management Studies, 8(3), 473–486. https://doi.org/10.1108/MBE-09-2016-0047
Chen, Y. S., Shen, C. H., & Lin, C. Y. (2014). The Benefits of Political Connection: Evidence from Individual Bank-Loan Contracts. Journal of Financial Services Research, 45, 287–305. https://doi.org/10.1007/s10693-013-0167-1
Claessens, S., Feijen, E., & Laeven, L. (2008). Political Connections and Preferential Access to Finance: The role of Campaign Contributions. Journal of Financial Economics, 88, 554–580. https://doi.org/10.1016/j.jfineco.2006.11.003
Faccio, M. (2006). Politically Connected Firms. The American Economic Review, 96(1), 369–386. https://doi.org/10.1257/000282806776157704
Faccio, M. (2010). Differences between Politically Connected and Non-Connected Firms : A Cross Country Analysis. Financial Management, 39(3), 905–927.
Faccio, M., Masulis, R. W., & McConnell, J. J. (2006). American Finance Association Political Connections and Corporate Bailouts. The Journal of Finance, 61(6), 2597–2635. https://doi.org/10.1111/j.1540-6261.2006.01000.x
Feng, F., Sun, Q., & Tong, W. H. S. (2004). Do Government-Linked Companies Underperform? Journal of Banking and Finance, 28, 2461–2492. https://doi.org/10.1016/j.jbankfin.2003.10.012
Ferguson, T., & Voth, H. J. (2008). Betting on Hitler - The value of political connections in Nazi Germany. Quarterly Journal of Economics, 123(1), 101–137. https://doi.org/10.1162/qjec.2008.123.1.101
Fisman, R. (2001). Estimating the Value of Political Connections. The American Economic Review, 91(4), 1095–1102.
Goldman, E., Rocholl, J., & So, J. (2009). Do Politically Connected Boards Affect Firm Value. Review of Financial Studies, 22(6), 2331–2360. https://doi.org/10.1093/rfs/hhn088
Gomez, E. T., Padmanabhan, T., Kamaruddin, N., Bhalla, S., & Fisal, F. (2017). Minister of Finance Incorporated: Ownership and Control of Corporate Malaysia. Springer.
Hamid, A. A. (2011). Network Governance in Government-Linked Companies (GLCs) and Non-Government-Linked Companies (NGLCs) in Malaysia. Journal of Financial Reporting and Accounting, 9(1), 54–73. https://doi.org/10.1108/MBE-09-2016-0047
Harefa, M. (2010). Pengelolaan BUMD/Perusahaan Daerah di Provinsi Sumatera Barat, Nusa Tenggara Barat dan Kalimantan Selatan. Kajian, 15(2), 199–226.
Hillman, A. J. (2005). Politicians on the Board of Directors : Do Connections Affect the Bottom Line ? Journal of Management, 31(3), 464–481. https://doi.org/10.1177/0149206304272187
Hillman, A. J., Keim, G. D., & Schuler, D. (2004). Corporate Political Activity : A Review and Research Agenda. Journal of Management, 30(6), 837–857. https://doi.org/10.1016/j.jm.2004.06.003
Holida, F., & Suryadi, H. (2012). Pengaruh Good Corporate Governance Terhadap Kinerja Perusahaan. Jurnal Demokrasi & Otonomi Daerah, 10(1), 1–26.
Hung, M., Kim, Y., & Li, S. (2018). Political Connections and Voluntary Disclosure: Evidence from Around the World. Journal of International Business Studies, 49(2), 272–302. https://doi.org/10.1057/s41267-017-0139-z
Ibrahim, J. (2006). Teori dan Metodologi Penelitian Normatif. Malang: Bayumedia Publishinng.
Ismail, W. A. W., Kamarudin, K. A., & Othman, R. (2012). Assessment of Earnings Conservatism in Government-Linked Companies. Procedia - Social and Behavioral Sciences, 65, 650–655. https://doi.org/10.1016/j.sbspro.2012.11.179
Johnson, S., & Mitton, T. (2003). Cronyism and Capital: Evidence from Malaysia. Journal of Financial Economics, 67, 351–382. https://doi.org/10.1017/CBO9781107415324.004
Lester, R. H., Hillman, A., Zardkoohi, A., & Cannella-JR., A. A. (2008). Former Government Officials As Outside Directors: The Role of Human and Social Capital. Academy of Management Journal, 51(5), 999–1013.
Li, H., Meng, L., Wang, Q., & Zhou, L. A. (2008). Political Connections, Financing and Firm Performance: Evidence from Chinese Private Firms. Journal of Development Economics, 87, 283–299. https://doi.org/10.1016/j.jdeveco.2007.03.001
Mak, Y. T., & Li, Y. (2001). Determinants of Corporate Ownership and Board Structure: Evidence from Singapore. Journal of Corporate Finance, 7, 235–256. https://doi.org/10.1016/S0929-1199(01)00021-9
Ming, T. C., & Lee, C. L. (2014). Board Structure and Firm Performance: Some Evidence from Malaysian Government Linked Companies. Corporate Ownership and Control, 12(1), 345–351. https://doi.org/10.22495/cocv12i1c3p4
Nurdhiana, & Bodroastuti, T. (2014). Peran Audit Internal dalam Penerapan Good Corporate Governance pada Badan Usaha Milik Negara Provinsi Jawa Tengah. Dinamika Akuntansi, Keuangan Dan Perbankan, 3(2), 114–128.
OECD. (2015). OECD Guidelines on Corporate Governance of State-Owned Enterprises. OECD.
Pina, V., Torres, L., & Bachiller, P. (2016). Political Influence and the Performance of Nonprofit Spanish Banks. Nonprofit Management & Leadership, 26(4), 471–488. https://doi.org/10.1002/nml
Redding, K. S., Xie, E., & Tang, Q. (2018). Institutionalization to Internationalization: the Transformational Dynamics and Outward Foreign Direct Investment of State-Owned Enterprises. International Journal of Public Sector Management, 31(2), 241–264.
Said, J., & Jaafar, N. H. B. (2014). Accountability in Government Linked Companies: An Empirical Finding. Procedia - Social and Behavioral Sciences, 145, 294–299. https://doi.org/10.3923/ibm.2015.460.469
Sapienza, P. (2004). The Effects of Government Ownership on Bank Lending. Journal of Financial Economics, 72, 357–384. https://doi.org/10.1016/j.jfineco.2002.10.002
Sauqi, Y. R., & Albintani, M. (2013). Tinjauan Ekonomi Politik Badan Usaha Milik Daerah. Jurnal Demokrasi & Otonomi Daerah, 11(2), 71–143.
Selznick, P. (1953). TVA and the Grass Roots: A Study in the Sociology of Formal Organization. Barkeley and Los Angeles: University of California Press.
Su, Z., Fung, H., & Yau, J. (2013). Political Connections and Corporate Overinvestment: Evidence from China. International Journal of Accounting and Information Management, 21(4), 285–296. https://doi.org/10.1108/IJAIM-02-2013-0006
Sutedi, A. (2012). Hukum Keuangan Negara. Jakarta: Sinar Grafika.
Ting, I. W. K., & Lean, H. H. (2011). Capital Structure of Government-Linked Companies in Malaysia. Asian Academy of Management Journal of Accounting and Finance, 7(2), 137–156. https://doi.org/10.1166/asl.2015.5944
Widjajanti, K. (2012). A Study Performance in Regional Government–Owned Enterprises Indonesia. In International Proceedings of Economics Development and Research (Vol. 48, pp. 130–133). https://doi.org/10.7763/IPEDR.
Wong, W.-Y., & Hooy, C.-W. (2018). Do Types of Political Connection Affect Firm Performance Differently? Pacific-Basin Finance Journal, 51, 297–317. https://doi.org/10.1016/j.pacfin.2018.08.009
Wu, W., Wu, C., Zhou, C., & Wu, J. (2012). Political connections, tax benefits and firm performance: Evidence from China. Journal of Accounting and Public Policy, 31(3), 277–300. https://doi.org/10.1016/j.jaccpubpol.2011.10.005
Xin, K. R., & Pearce, J. L. (1996). Connections as substitutes for formal institutional support. Academy of Management Journal, 39(6), 1641–1658.
Zhou, K. Z., Gao, G. Y., & Zhao, H. (2016). State Ownership and Firm Innovation in China: An Integrated View of Institutional and Efficiency Logics. Administrative Science Quarterly, 62. https://doi.org/10.1177/0001839216674457
Published
2021-10-25
How to Cite
DD Amdanata, & Burhan. (2021). Hubungan Antara BUMD dan Koneksi Politik di Indonesia: Suatu Telaah Pustaka. Bulletin of Management and Business, 2(2), 119-128. https://doi.org/10.31328/bmb.v2i2.168
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