Anti-corruption campaign in China: good news or bad news for firm value? |
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Authors: | Qianwei Ying Jinsong Liu |
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Institution: | Business school, Sichuan University, Chengdu, China |
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Abstract: | This article investigates the effects of an anti-corruption campaign on firm value by testing market reactions to the investigation of top local officials during the recent anti-corruption campaign in China. We find that the anti-corruption events are more likely to be bad news for the market values of local state-owned enterprises (SOEs) but good news for the market values of non-SOEs less dependent on political connections. Besides, anti-corruption events are also more likely to be bad news for firms in regulated industries or low-marketization regions but good news for firms in nonregulated industries or high-marketization regions. |
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Keywords: | Anti-corruption political connection firm value marketization |
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