IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v59y2019i5p3171-3221.html
   My bibliography  Save this article

The decreasing value of non‐SOEs’ political connections during China’s anti‐corruption campaign: evidence and mechanism

Author

Listed:
  • Jinsong Liu
  • Qianwei Ying

Abstract

In this paper, we find that China’s anti‐corruption campaign since 2012 significantly reduces the value of political connections for non‐state‐owned enterprises (non‐SOEs). We provide evidence showing that the decline of the value of political connections for non‐SOEs is attributed mainly to the decreasing return from political connections, instead of increasing political risk. We further find that the decreasing return of the politically connected firms is driven mainly by the disappearance of the ‘resource effect’ of political connection in facilitating access to bank credit and government subsidies, but not due to the increasing cost of maintaining political connections.

Suggested Citation

  • Jinsong Liu & Qianwei Ying, 2019. "The decreasing value of non‐SOEs’ political connections during China’s anti‐corruption campaign: evidence and mechanism," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(5), pages 3171-3221, December.
    • Handle: RePEc:bla:acctfi:v:59:y:2019:i:5:p:3171-3221
    DOI: 10.1111/acfi.12582
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/acfi.12582
    Download Restriction: no
    File URL: https://libkey.io/10.1111/acfi.12582?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kong, Dongmin & Tao, Yunqing & Wang, Yanan, 2020. "China's anti-corruption campaign and firm productivity: Evidence from a quasi-natural experiment," China Economic Review, Elsevier, vol. 63(C).
    2. Liu, Shiyuan & Du, Jiang & Zhang, Weike & Tian, Xiaoli & Kou, Gang, 2021. "Innovation quantity or quality? The role of political connections," Emerging Markets Review, Elsevier, vol. 48(C).
    3. Li, Qian & Wang, Shihao & Song, Victor, 2023. "Product competition, political connections, and the costs of high leverage," Journal of Empirical Finance, Elsevier, vol. 74(C).
    4. Baili Yang & Abraham Nahm & Zengji Song, 2022. "Succession, political resources, and innovation investments of family businesses: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 321-338, March.
    5. Xin Su & Shengshi Zhou & Rui Xue & Jinfang Tian, 2020. "Does economic policy uncertainty raise corporate precautionary cash holdings? Evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(5), pages 4567-4592, December.
    6. Ling Huang & Haiyue Liu & Jack Hou & Fulong Xiao, 2022. "Long‐term financing effects of Chinese non‐SOEs Belt and Road OFDI," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1819-1850, April.
    7. Jiafu An & Seth Armitage & Wenxuan Hou & Xianda Liu, 2020. "Do checks on bureaucrats improve firm value? Evidence from a natural experiment," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(5), pages 4821-4844, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:acctfi:v:59:y:2019:i:5:p:3171-3221. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaanzea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.