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Do political connections affect the environmental performance of Sharia-compliant and non-Sharia-compliant firms? Evidence from Indonesia's PROPER program

Author

Listed:
  • Budi Wahyono

    (Universitas Sebelas Maret, Indonesia & Yamaguchi University, Japan)

Abstract

This study offers novel evidence by investigating the impact of political connections on the environmental performance of both Sharia-compliant and non-Sharia-compliant firms. We use a unique sample of firms covered by Indonesia's PROPER program over the 2013–2019 period. We find that political ties are less (more) valuable for Sharia-compliant firms (non-Sharia-compliant firms) in enhancing their environmental performance. These results are robust to testing against an alternative measure of corporate environmental performance.

Suggested Citation

  • Budi Wahyono, 2023. "Do political connections affect the environmental performance of Sharia-compliant and non-Sharia-compliant firms? Evidence from Indonesia's PROPER program," Economics Bulletin, AccessEcon, vol. 43(4), pages 1771-1779.
    • Handle: RePEc:ebl:ecbull:eb-22-00648
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    political connections; Sharia; PROPER; environmental performance; Indonesia;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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