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Political uncertainty and litigation efficiency: Evidence from China

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  • Yuexin Huang
  • Ruijing Li
  • Danglun Luo
  • Rongli Yuan

Abstract

In this article, we investigate the influence of local official turnover on litigation efficiency using manually collected data from listed companies in China from 1995 to 2013. Our findings indicate that official turnover leads to a decrease in litigation efficiency, with a 16.3% increase in the duration of litigation cases. This effect is more pronounced when newly appointed officials are working in different locations. It is more significant when the involved enterprise is a private entity, suggesting that political cycles contribute to the selective enforcement of private enterprises. Further analysis reveals that the adverse impact of official turnover on litigation efficiency is short‐lived. The conclusions contribute to the existing literature on official turnover and litigation efficiency and hold potential implications for judicial independence reforms.

Suggested Citation

  • Yuexin Huang & Ruijing Li & Danglun Luo & Rongli Yuan, 2024. "Political uncertainty and litigation efficiency: Evidence from China," Economics and Politics, Wiley Blackwell, vol. 36(2), pages 1020-1055, July.
    • Handle: RePEc:bla:ecopol:v:36:y:2024:i:2:p:1020-1055
    DOI: 10.1111/ecpo.12276
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