The value of local political capital in transition China

  title={The value of local political capital in transition China},
  author={P. Sun and H. Xu and J. Zhou},
  journal={Economics Letters},
  • P. Sun, H. Xu, J. Zhou
  • Published 2011
  • Economics
  • Economics Letters
  • This paper documents stock market responses to the arrest of Shanghai's top leader by the Chinese central government in September 2006. The effects of personal-level and organizational-level connections to the local state are found to be negative and insignificant, respectively, on cumulative abnormal returns (CARs). Furthermore, companies having both personal and organizational political ties experienced the most adverse market reaction. 
    24 Citations

    Tables from this paper

    Political Tie Heterogeneity and the Impact of Adverse Shocks on Firm Value
    • 57
    • PDF


    Political connections, financing and firm performance: Evidence from Chinese private firms ☆
    • 1,048
    • PDF
    Bank Financing in China’s Private Sector: The Payoffs of Political Capital
    • 88
    • PDF
    Profiting from Government Stakes in a Command Economy: Evidence from Chinese Asset Sales
    • 120
    • PDF
    Politically Connected Firms
    • 2,431
    • PDF
    Political connections of newly privatized firms
    • 393
    • PDF
    Sudden Deaths: Taking Stock of Geographic Ties
    • 177
    • PDF
    Tunneling through intercorporate loans: The China experience☆
    • 724
    • PDF
    Public Governance and Corporate Finance: Evidence from Corruption Cases
    • 207
    • PDF
    Estimating the Value of Political Connections
    • 2,137
    • PDF
    Do Politically Connected Boards Affect Firm Value?
    • 816