“…Institutional theory emphasizes the in uence of the institutional environment on rm behavior and considers institutional change to be an important cause of the complexity of the business environment (DiMaggio & Powell, 1983). As important shapers of the regional institutional environment, turnover of local governing o cials constitutes a key factor in institutional environment changes (Chan & Feng, 2019;Liu et al, 2021), and it has been investigated in the literature that o cials' turnover lead to policy disruptions (Lin et al, 2015;Zhong et al, 2019;An et al, 2016) as well as elevated uncertainty in the economic environment (Chen et al 2020; Yu & Mai, 2020), which leads to elevated corporate systemic risk. On the other hand, the turnover of o cial power also implies a change in political ecology (Ni, 2019; Chen & Gao, 2020) and a reshaping of the legitimacy system (Yu et al, 2020;Lu, 2021;Dong et al, 2022), leading to a redistribution of political resources and giving rms the opportunity to seek development.…”