Political connected board of directors, sharia compliance and stock price synchronicity in Indonesia

Fatawijaya, Calvin and Joni, Joni and Martusa, Riki and Prayogo, Enny (2025) Political connected board of directors, sharia compliance and stock price synchronicity in Indonesia. Journal of Islamic Accounting and Business Research. ISSN 1759-0825

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Abstract

Purpose – This study aims to examine how Sharia compliance inuences the relationship between political connected Board of Directors and stock price synchronicity. Design/methodology/approach – The sample was selected using purposive sampling technique and the hypothesis was tested using multiple regression analysis. The sample consisted of 1,083 observations from companies listed on the Indonesia Stock Exchange in 2021–2022. Additional tests, such as endogeneity testing using the Generalized Method of Moments and Two-Stage Least Square, were also conducted. Findings – The ndings indicate that Sharia compliance strengthens the negative inuence of political connections in the board of directors on stock price synchronicity. This study can serve as a reference and consideration for investment decisions, suggesting that political connections and Sharia compliance are important factors for investing in Indonesian companies. Originality/value – This study examines how Sharia compliance inuences the association between political connections and stock price synchronicity in Indonesia where Sharia-based economy is largely developed.

Item Type:	Article
Contributors:	Contribution Contributors NIDN/NIDK Email Author Fatawijaya, Calvin UNSPECIFIED UNSPECIFIED Author Joni, Joni UNSPECIFIED UNSPECIFIED Author Martusa, Riki UNSPECIFIED UNSPECIFIED Author Prayogo, Enny UNSPECIFIED UNSPECIFIED
Uncontrolled Keywords:	Sharia compliance, Political connections, Stock price synchronicity, Sharia-based economy
Subjects:	H Social Sciences > HG Finance
Depositing User:	Perpustakaan Maranatha
Date Deposited:	06 Aug 2025 04:45
Last Modified:	06 Aug 2025 04:45
URI:	http://repository.maranatha.edu/id/eprint/34689

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