Koneksi Politik, Tingkat Korupsi Dan Penggunaan Utang Pada Perusahaan Non Keuangan Di Indonesia : Peran Ukuran Perusahaan Sebagai Moderasi

Abstract

This study aims to examine the effect of political connections on debt usage among non-financial companies in Indonesia and to investigate the moderating role of firm size in this relationship. Political connections are considered a factor that may provide firms with advantages in obtaining external financing, particularly debt, by enhancing creditors' confidence and reducing perceptions of business and regulatory risks. The existence of political connections may serve as a positive signal to creditors that a firm has support or access that can help maintain its operational and financial stability. However, the influence of political connections on financing decisions is expected to vary across firms with different size characteristics. Large firms generally possess greater assets that can be used as collateral, stronger reputations, higher credibility, and broader access to financing than smaller firms, making them less dependent on political connections. This study employs a quantitative approach using secondary data obtained from the financial statements of non-financial companies listed on the Indonesia Stock Exchange. The research sample consists of 745 companies, yielding a total of 3,692 firm-year observations. The data were analyzed using descriptive statistics, Pearson correlation analysis, and moderated regression analysis. The results indicate that political connections have a positive and significant effect on corporate debt usage. Furthermore, firm size is found to negatively moderate the relationship between political connections and debt usage. This finding implies that firm size weakens the positive effect of political connections on corporate debt usage