The Centre for Accounting, Banking and Finance (CABF) parked under the Faculty of Business and Finance (FBF) organised a research talk titled “Politically Connected Boards, Family Business Groups, Cost of Capital: Evidence from Indonesia” on 5 October 2017 at Kampar Campus.
The talk was delivered by Accounting Professor-cum-Research Director of La Trobe Business School of La Trobe University, Melbourne, Australia Prof Dr Kamran Ahmed.
Present at the talk were FBF Dean Dr Au Yong Hui Nee, FBF Deputy Dean for Student Development and Industrial Training Yew King Tak, Acting Head of Department of Commerce and Accountancy of FBF Dr Zam Zuriyati binti Mohamad, Chairperson of CABF Dr Krishna Moorthy Manicka Nadar and FBF lecturers.
Prof Kamran explaining his research findings to the participants
At his talk, Prof Kamran discussed the unique governance structure in Indonesia consisting of a Supervisory Board (SB) and the Board of Directors (BOD). He highlighted that SB plays the more important strategic role, while BOD is in charge of the operational aspects of a firm.
His research paper examines the effect of politically connected SBs/ BODs on the cost of debt and equity capital and whether firms belonging to family business group with political SBs/BODs experience more benefits as reflected in lower cost of debt and equity capital.
Dr Au Yong presenting a souvenir to Prof Kamran
The talk concluded with Prof Kamran presenting the findings of his study. Among others, one of the findings showed that family business groups firms with political SBs experience comprised more benefits than independent firms and that this was reflected in lower cost of debt and equity capital.
The interesting talk was followed by a Q&A session and thereafter a souvenir was presented to Prof Kamran by Dr Au Yong. The talk ended with a group photography session.
An enlightening talk
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