IDEAS home Printed from https://ideas.repec.org/a/bla/chinae/v31y2023i4p66-89.html
   My bibliography  Save this article

The Geographical Rotation of Local Officials and Enterprise Cross‐city Mergers and Acquisitions in China

Author

Listed:
  • Liangxiong Huang
  • Peilun Li
  • Xianbin Wang
  • Caiting Yang

Abstract

The economic impact of the geographical rotation of local officials is important in China's official management system. This study used a zero‐inflated Poisson regression model and found that the geographical rotation of local officials significantly increased cross‐city mergers and acquisitions (M&As) of enterprises. The impact of local officials' geographical rotation on M&As was more pronounced under certain conditions. These conditions included: (i) when officials were transferred from cities with a higher development level to cities with a lower development level; (ii) when the outflow cities were municipalities directly governed by the central government, provincial capitals, or separately listed cities; (iii) when the transfers of officials occurred within the same province; (iv) when the transfers took place before 2012; and (v) when the transfers happened in the years following significant central government conferences, which provided strong political incentives for M&As.

Suggested Citation

  • Liangxiong Huang & Peilun Li & Xianbin Wang & Caiting Yang, 2023. "The Geographical Rotation of Local Officials and Enterprise Cross‐city Mergers and Acquisitions in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(4), pages 66-89, July.
    • Handle: RePEc:bla:chinae:v:31:y:2023:i:4:p:66-89
    DOI: 10.1111/cwe.12493
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/cwe.12493
    Download Restriction: no
    File URL: https://libkey.io/10.1111/cwe.12493?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
    ---><---

    References listed on IDEAS

    as
    1. Bai, Chong-En & Tao, Zhigang & Tong, Yueting Sarah, 2008. "Bureaucratic integration and regional specialization in China," China Economic Review, Elsevier, vol. 19(2), pages 308-319, June.
    2. John S. Earle & Scott Gehlbach, 2015. "The Productivity Consequences of Political Turnover: Firm‐Level Evidence from Ukraine's Orange Revolution," American Journal of Political Science, John Wiley & Sons, vol. 59(3), pages 708-723, July.
    3. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    4. Wilson, Paul, 2015. "The misuse of the Vuong test for non-nested models to test for zero-inflation," Economics Letters, Elsevier, vol. 127(C), pages 51-53.
    5. Yang Yao & Muyang Zhang, 2015. "Subnational leaders and economic growth: evidence from Chinese cities," Journal of Economic Growth, Springer, vol. 20(4), pages 405-436, December.
    6. Shi, Xiangyu & Xi, Tianyang & Zhang, Xiaobo & Zhang, Yifan, 2021. "“Moving Umbrella”: Bureaucratic transfers and the comovement of interregional investments in China," Journal of Development Economics, Elsevier, vol. 153(C).
    7. Sichong Chen & Wenxue Li & Qi Wang, 2020. "Are Chinese Acquirers Discriminated against in Cross‐border Mergers and Acquisitions? An Analysis Based on Covered Transactions Filed with CFIUS," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(2), pages 37-58, March.
    8. Lingyun He & Nini Chen, 2022. "Turnover of Local Government Officials and Local Air Quality," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(4), pages 100-121, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Monika Stachowiak-Kudła & Janusz Kudła, 2023. "Measuring the prestige of administrative courts," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3637-3662, August.
    2. He, Ruofan & Wan, Panbing, 2024. "Electricity market integration in China: The role of government officials’ hometown ties," Energy, Elsevier, vol. 303(C).
    3. Ehsan Bahrami Samani & Elham Tabrizi, 2023. "Joint Linear Modeling of Mixed Data and Its Application to Email Analysis," Sankhya B: The Indian Journal of Statistics, Springer;Indian Statistical Institute, vol. 85(1), pages 175-209, May.
    4. Craig W. Carpenter & Anders Van Sandt & Rebekka Dudensing & Scott Loveridge, 2022. "Profit Pools and Determinants of Potential County-Level Manufacturing Growth," International Regional Science Review, , vol. 45(2), pages 188-224, March.
    5. David Dale & Andrei Sirchenko, 2021. "Estimation of nested and zero-inflated ordered probit models," Stata Journal, StataCorp LP, vol. 21(1), pages 3-38, March.
    6. He, Qing & Xue, Chang & Zhou, Shaojie, 2019. "Does contracting institution affect the patterns of industrial specialization in China?," China Economic Review, Elsevier, vol. 54(C), pages 191-203.
    7. Thelwall, Mike, 2016. "Are there too many uncited articles? Zero inflated variants of the discretised lognormal and hooked power law distributions," Journal of Informetrics, Elsevier, vol. 10(2), pages 622-633.
    8. Thelwall, Mike, 2016. "Are the discretised lognormal and hooked power law distributions plausible for citation data?," Journal of Informetrics, Elsevier, vol. 10(2), pages 454-470.
    9. João M. C. Santos Silva, 2017. "Local maxima in the estimation of the ZINB and sample selection models," United Kingdom Stata Users' Group Meetings 2017 07, Stata Users Group.
    10. Christian Balcells, 2022. "Determinants of firm boundaries and organizational performance: an empirical investigation of the Chilean truck market," Journal of Evolutionary Economics, Springer, vol. 32(2), pages 423-461, April.
    11. Elbakidze, Levan & Beeson, Quinn, 2020. "State Regulatory Heterogeneity and Clean Water Act Compliance," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304638, Agricultural and Applied Economics Association.
    12. Wakil, Gulraze & Petruska, Karin A., 2022. "Does mandatory IFRS adoption affect large and small public firms' accounting quality differently? Evidence from Canada," Advances in accounting, Elsevier, vol. 57(C).
    13. Danny Pfeffermann & Arie Preminger, 2021. "Estimation Under Mode Effects and Proxy Surveys, Accounting for Non-ignorable Nonresponse," Sankhya A: The Indian Journal of Statistics, Springer;Indian Statistical Institute, vol. 83(2), pages 779-813, August.
    14. Alexander Jung, 2018. "Have money and credit data releases helped markets to predict the interest rate decisions of the European Central Bank?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(1), pages 39-67, February.
    15. Diexin Chen & Yuxiang Xiao & Kaicheng Huang & Xiumin Li, 2022. "Research on the Correlation and Influencing Factors of Digital Technology Innovation in the Guangdong–Hong Kong–Macao Greater Bay Area," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    16. Verkade, Emiel & Bakens, Jessie, 2020. "Commuter flow predictions in POA: Evaluation study," ROA Technical Report 005, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    17. Počuča, Nikola & Jevtić, Petar & McNicholas, Paul D. & Miljkovic, Tatjana, 2020. "Modeling frequency and severity of claims with the zero-inflated generalized cluster-weighted models," Insurance: Mathematics and Economics, Elsevier, vol. 94(C), pages 79-93.
    18. Mian Yang & Ruofan He & Panbing Wan, 2024. "The transfer of provincial officials and electricity transactions in China," Public Choice, Springer, vol. 198(3), pages 377-402, March.
    19. Tao, Linwei & Hayashi, Kiichiro & Shiraki, Hiroto & Huang, Xiaoxun & Dem, Phub, 2024. "Exploration of determinants underlying regional disparity in rooftop photovoltaic adoption: A case study in Nagoya, Japan," Applied Energy, Elsevier, vol. 367(C).
    20. Derek S. Young & Andrew M. Raim & Nancy R. Johnson, 2017. "Zero-inflated modelling for characterizing coverage errors of extracts from the US Census Bureau's Master Address File," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 180(1), pages 73-97, January.

    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:chinae:v:31:y:2023:i:4:p:66-89. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/iwepacn.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.