Estimating the Value of Political Connection to Malaysia’s Richest Tycoon Companies
This study investigates the effect of direct political connection on the firm value of Malaysia’s top richest tycoon companies. We hypothesize that the wealthiest people are likely to hedge their political bets and are poorly related to direct political connections, which in turn conceal the direct political effect on firm value. The empirical evidence provides credence to this idea; in cases where the majority of the shares are controlled by “peripheral capitalism,” only government ownership has a positive and highly significant effect on the financial value of a firm. Meanwhile, the presence of politicians on board has a negative and low significant effect on the financial value of a firm. Results suggest the possibility of an indirect political connection among Malaysia’s top richest tycoon companies; the results also fit into the ongoing debate on estimating the value of political connection.
With the use of data and concrete examples, such as ::: a mini-case study, and a focus on the top 20 global players, this ::: thesis aims at tackling Capex issues in the telecom industry by ::: covering: – Uses, levels, inefficiencies in Capex management, ::: notably via insider perspective, and their impacts on capital ::: allocation; – Financing of Capex via debt and the recent ::: development of asset monetization; – Specific trends (NSA, VNOs) ::: and M&A in the telecom industry and their impacts on Capex, via ::: the case study of the French SFR-Numericable ::: transaction.