The value of local political capital in transition China

@article{Sun2011TheVO,
  title={The value of local political capital in transition China},
  author={P. Sun and H. Xu and J. Zhou},
  journal={Economics Letters},
  year={2011},
  volume={110},
  pages={189-192}
}
  • 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. 
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