Mean-reversion Analysis in Stock Prices and Firm Performance: Evidence from Politically Connected Firms in ASEAN-4

Fildzah Imas Maulidina, Viverita

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Previous studies have investigated the random walk trend in stock prices related to the efficient market hypothesis and found that stock prices follow mean-reversion trend. The purpose of this study is to investigate whether mean-reversion trend exists in the stock price of firms with political connections in Association of Southeast Asian Nations (ASEAN)-4 countries (i.e., Indonesia, Malaysia, Singapore, and Thailand). In addition, it also examinesthe impact of political connections on firm performance in 337 non-financial firms. The result shows there is a mean-reversion trend in the stock price of firms with political connections in ASEAN-4 countries. Also, the results show that only Singaporean firms have experienced a significant impact of political connections on firm performance. This study provides an interesting finding among firms with political connections, especially in ASEAN-4
Original languageEnglish
Title of host publicationMean-reversion Analysis in Stock Prices and Firm Performance: Evidence from Politically Connected Firms in ASEAN-4
Publication statusPublished - 2023

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