This study examines whether the withholding of bad news from shareholders by managers is influenced by the different types of political connections that a firm may have. Specifically, we investigate whether the length of political connections, different types of ownership structures of politically connected firms, and different kinds of political ties have similar effects on stock price crash risk. Based on an analysis of a comprehensive Malaysian dataset of public listed firms for the period 2007 to 2016, our results show that older politically connected firms, government-linked companies and firms connected through shareholders to important politicians have greater stock price crash risk. The management suppressing negative information from other shareholders differs according to different types of political connections.

本研究考察了管理者对股东隐瞒坏消息是否受到公司可能拥有的不同类型的政治关系的影响。具体而言，我们调查政治联系的长度、政治联系公司的不同类型的所有权结构以及不同类型的政治联系是否对股价崩盘风险具有相似的影响。根据对 2007 年至 2016 年期间马来西亚上市公司综合数据集的分析，我们的结果表明，较老的政治关联公司、政府关联公司和通过股东与重要政治家有关联的公司具有更大的股价崩盘风险。管理层对其他股东负面信息的压制根据不同类型的政治关系而有所不同。