The impact of political connection on cost of debt
Keywords:
political connection, cost of debt
Abstract
This paper aims to explore the association between political connection and cost of debt in Vietnamese listed firms. The study uses unbalance panel data from reports including annual reports and financial statements of 690 listed companies from 2011 to 2017. The raw data was collected from the websites of HNX, HOSE and DataStream. Using the least-squares regression model OLS, the random-effect model REM, the fixed-effect model FEM, the dynamic system GMM method, this study finds a negative association between a political connection and cost of debt.