Anticorruption, political connections, and corporate cash policy: Evidence from politician downfalls in China

Ren, Haohan; Zhao, Xiaofeng

doi:10.1016/j.ememar.2020.100745

Cited by 9 publications

(6 citation statements)

References 38 publications

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“…Addressing the destructiveness of corruption, China's government has declared the need to fight against corruption and has taken various measures to solve this problem. When president Xi Jinping was appointed as the party chief in 2012, he launched the unprecedented anticorruption campaign, with a vow to 'fight corruption at every level, punish every corrupt official, and eradicate the soil that breeds corruption' [23].…”

Section: Literature Review 21 the China's Anticorruption Shocks And Corporate Depoliticizationmentioning

confidence: 99%

“…Therefore, this paper added these factors in our research model to mitigate such issues on our finding. Following the study of Ren et al [23], we first added environmental regulation in baseline model, and we reran all regression models. The measurement of environmental regulation is based on the approach of Li et al [1] and Aiken and Pasurka [68], which adopted Sulphur dioxide removal rate to measure it.…”

Section: Further Analysismentioning

confidence: 99%

“…However, few studies have examined the depoliticization of firms (i.e., the loss of political connections). In fact, corrupt politicians have been removed from government and, thus, have fallen out of power in disgrace during China's anticorruption campaign [22,23]. China's anticorruption activities have enacted various provisions, which have subjected firms to depoliticization since 2012.…”

Section: Introductionmentioning

confidence: 99%

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Busting the ‘Princeling’? Demystifying the Effect of Corporate Depoliticization on Green Innovation: The Moderating Effect of Politician Turnover

Tang

2021

Sustainability

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China’s anticorruption efforts and depoliticized provisions trigger government officials to resign from firms, terminating corporate political connections established through managers. This paper addresses corporate depoliticization and its effect on firms’ green strategies. We disentangled how and why depoliticized firms actively take on green innovation and the moderating effect of politician turnover on the above relationship. This paper utilized the data related to China’s privately operated firms from 2008 to 2017 to test its hypothesis. Using the methods of propensity score matching (PSM) and difference-in-difference (DID) to mitigate endogeneity issues, the results indicate that (1) corporate depoliticization can foster green innovation; (2) the exploration of the boundary condition of politician turnover shows that the positive relationship between corporate depoliticization and green innovation is enhanced when depoliticized firms have experienced the changes of government officials; (3) anticorruption shocks can significantly and positively affect green innovation when interacted with a firm with depoliticization. These findings enrich corporate depoliticization and green innovation research.

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Section: Literature Review 21 the China's Anticorruption Shocks And Corporate Depoliticizationmentioning

confidence: 99%

Section: Further Analysismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Busting the ‘Princeling’? Demystifying the Effect of Corporate Depoliticization on Green Innovation: The Moderating Effect of Politician Turnover

Tang

2021

Sustainability

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“…Hence, both are regarded as firms’ performance. Two mainly used market-based measures are Tobin’s Q, as used in Aldhamari et al (2020), Chen et al (2020), Ha and Frömmel (2020), Joni et al (2020) and Ren and Zhao (2020) and abnormal returns or cumulated abnormal return (AR/CAR), as seen in Shi et al (2018) and Ying and Liu (2018). This paper will scrutinize these measures’ differences and check whether they moderate the relationship between PCs and firms’ performance.…”

Section: Introductionmentioning

confidence: 99%

Are political connections beneficial or harmful toward firms’ performance? A meta-analysis approach

Prasetyo

Nasution

2021

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Purpose This study aims to reconcile conflicting empirical results from prior studies on the association between political connections (PCs) and firms’ performance. Furthermore, it investigates whether the contradictory findings were moderated by the different types of both PCs and firms’ performance measures. This study also makes a cross-country comparison of the empirical evidence to provide more insight. Design/methodology/approach This study used meta-analysis to integrate the previous studies’ findings on the association between PCs and firms’ performance and further investigated the moderators of such association. Findings The findings show that PCs have a positive association with firms’ performance. This result is apparent for both democratic and authoritarian countries, which suggests PCs’ beneficial consequences toward firms’ performance should not be disregarded in both contexts. This study also finds PCs and firms’ performance measures moderate the association between PCs and firms’ performance. Originality/value This study contributes to the stream of research that investigates the association between PCs and firms’ performance. To the best of my knowledge, it is among the first to implement statistical meta-analysis on the aforementioned literature while incorporating a cross-country comparison.

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“…It is worth noting that the use of political connection for addressing performance pressure is contingent on the administrative environment (Peng & Luo, 2000). With the unprecedented anticorruption movement and tighter administrative discipline in recent years, the effect of political connection on removing institutional barriers for obtaining institutional resources may be less pervasive (Ren & Zhao, 2020). A recent study found that more risk-averse Chinese CEOs tend to invest less in establishing and maintaining political connections (Opper et al, 2017).…”

Section: Political Obligations and Capitalmentioning

confidence: 99%

The work stress of Chinese senior executives: Work stressors and coping strategies

Duan¹

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Along with rapid economic development, work stress has become a serious issue in China, especially for senior executives who are steering their organisations in this turbulent and complex social environment. The Chinese economy is transitioning from being centrally planned towards a more market-orientated one, where political and market forces continue to work closely together. As these economic changes challenge traditional values such as harmony and guanxi, Chinese senior executives who work within these environments and manage these workplace transitions become an interesting focus of attention worthy of deeper research. While our knowledge about work stress is mainly based on research in Western societies, how work stress manifests itself in a transitional economy like China is underexplored. Drawing on cognitive appraisal theory, this study examines the work stress of Chinese senior executives. Work stress is not only caused by stressors but is also influenced by the efficacy of coping. As an individual can cope with a stressor in different ways depending on the resources possessed by the individual, this study is interested in the relationship between coping resources and coping strategies. Therefore, it asks two research questions: What stressors do Chinese senior executives experience in their work environment? How do Chinese senior executives utilise resources to cope with their work stress? This study draws on phenomenology as a philosophical lens to explore the work stress of Chinese senior executives as stress is conceptualised as a subjective personal experience, the investigation of which needs to be based on the phenomenological assumption that reality is based on perception and interpretation of the external world. In addressing the research questions, a sample of Chinese senior executive within private, public, and mixed ownership organisations were interviewed using Critical Incident Technique (CIT) to capture contextual details critical for identifying stressors and coping strategies. Research data was analysed using six phases of thematic analysis. This study contributes to extant literature by providing insights into the work stressors and coping strategies that Chinese senior executives face and employ. Findings highlight the relevance of both organisational and environmental factors in shaping performance uncertainty that give rise to the work stress of Chinese senior executives. Moreover, political-business role conflict linked to the one-party state is identified as a distinctive work stressor in the Chinese context – a work stressor that has hitherto not been identified in the work stress literature. Furthermore, whereas previous literature predominantly focuses on workplace interpersonal conflicts as a major work stressor, this study identifies an additional interpersonal stressor: the challenge of maintaining workplace interpersonal harmony. Finally, while previous research of career-related stressors mainly focuses on negative, confining career experiences, this study reveals that Chinese senior executives often identify challenging work goals in their desire for career success. As for coping, prior research has mainly focused on individual coping, with less attention afforded to collective and social coping. This study finds that collective coping is supported by job resources (within the organisation) and that social coping is underpinned by social resources (external to the organisation). A specific focus of this study was to examine how job and social resources are utilised to implement collective and social coping. Findings reveal that job and social resources facilitate problem-focused strategies in both collective and social coping. By contrast, these resources are barely used to facilitate emotion-focused and meaning-focused strategies in both collective and social coping. Research has shown that effective coping is determined by coping flexibility and that multiple coping strategies are utilised flexibly according to different situations. However, the asymmetric pattern of collective and social coping found in this study indicates that Chinese senior executives may not fully benefit from coping in the organisational and social domain. Overall, this study builds on cognitive appraisal theory by identifying several contextually situated work stressors and explaining the connections between coping resources and coping strategies within the framework of collective and social coping. In doing so, the study provides new insights into work stress in the Chinese context, where Chinese senior executives are required to meet many contradictory expectations in a rapidly changing society.

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Anticorruption, political connections, and corporate cash policy: Evidence from politician downfalls in China

Cited by 9 publications

References 38 publications

Busting the ‘Princeling’? Demystifying the Effect of Corporate Depoliticization on Green Innovation: The Moderating Effect of Politician Turnover

Busting the ‘Princeling’? Demystifying the Effect of Corporate Depoliticization on Green Innovation: The Moderating Effect of Politician Turnover

Are political connections beneficial or harmful toward firms’ performance? A meta-analysis approach

The work stress of Chinese senior executives: Work stressors and coping strategies

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