Betting on a Princeling

  title={Betting on a Princeling},
  author={YuHua Wang},
While previous studies on political connections have empirically estimated the effects of connections on firm value, we still know relatively little about how political connections are formed, or about how the formation of political connections affects the way politicians influence firms. I address these two questions by examining recent cases in China in which two powerful politicians–Bo Xilai and Chen Liangyu–were removed from office. I show that Bo’s removal only affected nationally… CONTINUE READING