#68310 Summary

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Authors Suhadi hadi, Dina Endriana, Pancawati Hardiningsih
Title POLITICAL CONNECTIONS AND LIQUIDITY IN FINANCIAL DISTRESS: DOES BOARD SIZE MATTER?
Original file 68310-203143-1-SM.docx  2026-10-26
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Submitter Hadi Suhadi hadi hadi Mail
Date submitted October 26, 2026 - 01:37 PM
Section Articles
Editor Roymon Panjaitan Mail
Author comments Dear Editor-in-Chief,

We are pleased to submit our manuscript entitled "POLITICAL CONNECTIONS AND LIQUIDITY IN FINANCIAL DISTRESS:
DOES BOARD SIZE MATTER?
" for consideration for publication in the Journal of Accounting and Business Education (JABE), Universitas Negeri Malang.

We believe that our manuscript aligns with the aims and scope of JABE and offers valuable contributions to the existing literature, particularly in the fields of accounting, business, and education.

We confirm that this manuscript is original, has not been published previously, and is not currently under consideration for publication in any other journal. All authors have reviewed and approved the manuscript and agreed to its submission to JABE.

We sincerely appreciate your time and consideration. We look forward to receiving feedback from the editorial team and reviewers.

Thank you for your consideration.

Sincerely,

(Suhadi)
On behalf of all authors

Status

Status In Review
Initiated 2026-10-27
Last modified 2026-11-02

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Authors

Name Suhadi hadi Mail
ORCID iD http://orcid.org/0009-0005-5384-9838
URL https://orcid.org/my-orcid?orcid=0009-0005-5384-9838
Affiliation FEBI UIN Sunan Kudus
Country Indonesia
Bio Statement —
Principal contact for editorial correspondence.
 
Name Dina Endriana Mail
Affiliation Faculty of Islamic Economics and Business, UIN Sunan Kudus, Indonesia
Country Indonesia
Bio Statement —
 
Name Pancawati Hardiningsih Mail
Affiliation Faculty of Economics and Business, Universitas Dian Nuswantoro
Country Indonesia
Bio Statement —

Title and Abstract

Title POLITICAL CONNECTIONS AND LIQUIDITY IN FINANCIAL DISTRESS: DOES BOARD SIZE MATTER?
 
Abstract This study examines the relationships between political connections, liquidity, and financial distress, with particular emphasis on the moderating role of board size among non-banking state-owned enterprises listed on the Indonesia Stock Exchange during 2020–2024. Financial condition is measured using the continuous Altman Z-score. Political connections are operationalized as the number of politically connected directors or commissioners, liquidity is measured using the current ratio, and board size is defined as the number of directors serving on the management board. Data are analyzed using multiple linear regression and moderated regression analysis (MRA). The findings reveal no statistically significant association between political connections and financial condition. In contrast, liquidity exhibits a positive and statistically significant association with the Altman Z-score, indicating relatively stronger financial health. Board size does not significantly moderate either relationship. This study contributes to the literature by jointly examining political connections, short-term financial capacity, and board structure within the context of Indonesian state-owned enterprises. Theoretically, the findings challenge the assumption that political connections or larger management boards necessarily correspond to greater financial resilience. From a practical perspective, the results underscore the importance of prioritizing liquidity monitoring and financial fundamentals rather than relying on political connections or board size as stand-alone indicators of corporate financial health.

Indexing

Keywords Political connections; Liquidity; Financial distress; Board Size
 
Language en

Supporting Agencies

Agencies —

References

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