Political turnovers, ownership, and corporate investment in China

• Main Authors: CAO, Jerry X., BRANDON, Julio, LENG, Tiecheng, ZHOU, Sili
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2016
• 主題: Corporate investment; Political turnover; China; SOE; Political uncertainty; Grabbing-hand; Crowding out; Investment efficiency; Asian Studies; Corporate Finance; Finance and Financial Management
• 在線閱讀: https://ink.library.smu.edu.sg/lkcsb_research/6420; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7419/viewcontent/Political_Turnover_Ownership_2016_wp.pdf

We examine the impact of political influence and ownership on corporate investment by exploiting the unique way provincial leaders are promoted in China. The tournament-style promotion system creates incentives for new governors to exert influence over investment in the early years of their term. We...