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Purpose This study examined the effect of different types of politically connected (PCON) Malaysian firms on analysts' forecast accuracy and dispersion. Design/methodology/approach The study identified different types of PCON firms according to Wong and Hooy's (2018) classification, which divided political connections into government-linked companies (GLCs), boards of directors, business owners and family members of government leaders. The sample covered the period 2007–2016, for which earnings forecast data were obtained from the Institutional Brokers' Estimate System (IBES) database and financial data were extracted from Thomson Reuters Fundamentals. We deleted any market consensus estimates made by less than three analysts and/or firms with less than three years of analyst forecast information to control for the impact of individual analysts' personal attributes. Findings The study found that PCON firms were associated with lower analyst forecast accuracy and higher forecast dispersion. The effect was more salient in GLCs than in other PCON firms, either through families, business ties or boards of directors. Further analyses showed that PCON firms—in particular GLCs—were associated with more aggressive reporting of earnings and poorer quality of accruals, hence providing inadequate information for analysts to produce accurate and less dispersed earnings forecasts. The results were robust even after addressing endogeneity issues. Research limitations/implications This study found new evidence of the impact of different types of PCON firms in exacerbating information asymmetry, which was not addressed in prior studies. Practical implications This study has a significant practical implication for investors that they should be mindful of high information asymmetry in politically connected firms, particularly government-linked companies. Originality/value This is the first study to provide evidence of the impact of different types of PCON firms on analysts' earnings forecasts.

The Corruption Perception Index (CPI) for Malaysia shows undesirable results, indicating the issue of corruption should be taken seriously. To address the corruption issue social constructionist perspective is employed, specifically qualitative methodology is used to gain an insight of the phenomenon.This qualitative study investigates the factors contributing to the occurrence of corruption in the Malaysian context.A total of twelve interviews were conducted.The respondents in the study were practitioners, representatives from government agencies and senior public sector officials.Several themes emerged as to why people are corrupt, including: power, opportunity and moral impurity.This study suggests determinants of individual acts of corruption in the Malaysian context.The findings will be useful for practitioners and regulators as the findings can provide insightful information to support the proactive measure to fight corruption.