Post-IPO Firm Valuation And Corporate Governance Of Politically Connected Firms In Singapore

In this paper, the authors explore the relationship between political connection and firm value of newly listed companies in Singapore from 1997-2002. Using Tobin's Q as a proxy for firm value, the objective of this paper is to investigate whether there is a significant difference between politically connected firms and those that are not. They find that, in Singapore where corruption is low, political connection does not contribute significantly to firm value. These results are consistent even after they have controlled for firm specific characteristics such as firm size, leverage ratio, profitability, year of listing and industry type.