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Haste makes waste: Political entrepreneur’s rent-seeking choices in anti-corruption campaign

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  • Du, Jane
  • King, Cheng
  • Shi, Xinxiang

Abstract

This paper provides firm-level empirical evidence of the policy effects of China’s anticorruption campaign on SOE (state-owned enterprise) entrepreneur behaviour and corporate governance. While conflicts between corruption monitoring and performance of SOEs do exist, the 2012 anticorruption movement has profoundly changed Chinese political entrepreneurs’ power choice and accountability for SOE corporate governance. Specifically, this paper shows that the anticorruption measures have effectively reduced the sum of perks but aroused excessive asset extraction. When perk consumption has been seriously curtailed by the anticorruption rules, SOE executives’ reversed expectation precipitates their opportunistic activities in SOE’s tangible asset management and undermines SOE’s long-term corporate value.

Suggested Citation

  • Du, Jane & King, Cheng & Shi, Xinxiang, 2022. "Haste makes waste: Political entrepreneur’s rent-seeking choices in anti-corruption campaign," Journal of Policy Modeling, Elsevier, vol. 44(3), pages 617-634.
    • Handle: RePEc:eee:jpolmo:v:44:y:2022:i:3:p:617-634
    DOI: 10.1016/j.jpolmod.2022.05.005
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    References listed on IDEAS

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    More about this item

    Keywords

    Executive perks; Tangible asset; Rent seeking; Anticorruption; State-owned enterprises (SOEs); Corporate governance; Corporate value;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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