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Discussion of “local government turnover and capital structure: evidence from China”

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  • Jingjing Li

Abstract

Purpose - This paper aims to identify and evaluate the limitations related to Xinet al.(2022). The discussant also provide suggestions for future research along this line. Design/methodology/approach - In this discussion, the discussant will attempt to identify the main limitations and provide suggestions for future improvement. This written discussion focuses on three main points. First, the discussant will focus on the incremental contribution. Second, the discussant will discuss some remaining issues with the empirical design and propose suggestions for further improvement. Lastly, the discussant will go over the underlying reasons behind the documented results. Findings - Xinet al.(2022) investigate the original and important question of whether local leadership turnover leads to lower financial leverage. Originality/value - Xinet al.(2022) contribute to the research line of the economic impact of political uncertainty by investigating the turnover year effect of local top leadership in the Chinese setting. Future research can improve our understanding by investigating the underlying mechanisms behind the documented results.

Suggested Citation

  • Jingjing Li, 2022. "Discussion of “local government turnover and capital structure: evidence from China”," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 30(5), pages 645-647, October.
    • Handle: RePEc:eme:arapps:ara-09-2022-0225
    DOI: 10.1108/ARA-09-2022-0225
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