In the Shadows of the Government: Relationship Building During Political Turnovers /

We document that following a turnover of the Party Secretary or mayor of a city in China, firms (especially private firms) headquartered in that city significantly increase their "perk spending." Both the instrumental-variable-based results and heterogeneity analysis are consistent with th...

Ausführliche Beschreibung

Gespeichert in:
Weitere Titel:
In the Shadows of the Government
1. Verfasser:
Fang, Hanming
Körperschaft:
National Bureau of Economic Research
Weitere Verfasser:
Li, Zhe, Xu, Nianhang, Yan, Hongjun
Format:
Elektronisch E-Book
Sprache:
Englisch
Veröffentlicht:
Cambridge, Mass. National Bureau of Economic Research 2018.
Zusammenfassung:
We document that following a turnover of the Party Secretary or mayor of a city in China, firms (especially private firms) headquartered in that city significantly increase their "perk spending." Both the instrumental-variable-based results and heterogeneity analysis are consistent with the interpretation that the perk spending is used to build relations with local governments. Moreover, local political turnover in a city tends to be followed by changes of Chairmen or CEOs of state-owned firms that are controlled by the local government. However, the Chairmen or CEOs who have connections with local government officials are less likely to be replaced.
Umfang:
1 online resource: illustrations (black and white);
Anmerkungen:
November 2018.
Schlagworte: