Political Uncertainty and Its Effects on Local Fixed-Asset Investments in China: Static and Dynamic Panel Data Analysis

Piao, Long; Park, Hyo Seong; Lee, Seo Hee

doi:10.35820/jmcs.20.4.5

Cited by 3 publications

(4 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In Western democracies where political leaders are chosen directly by voters, political uncertainty is primarily related to political shock manifested in the year of the election or unforeseen events such as the death of a political leader (Boutchkova et al, 2012; Brogaard and Detzel, 2015; Jones and Olken, 2005; Pastor and Veronesi, 2012). In China, as citizens do not elect local government leaders, political uncertainty is generally seen as shocks resulting from changes in local government leadership and corruption scandals (An et al, 2016; Chen et al, 2018; Liu et al, 2017; Piao et al, 2019; Xu et al, 2016; Zhou, 2017).…”

Section: Literature Review and Research Questionsmentioning

confidence: 99%

“…A recent study analyzed the relationship between political uncertainty and corporate investment activity at the city government level. Piao et al (2019) investigated the effect of turnover of city-level party secretaries on aggregate investment amount in fixed assets without comprehensively comparing various types of political appointments.…”

Section: Literature Review and Research Questionsmentioning

confidence: 99%

“…The highest-ranking municipal officials' involvement in business-government collusion and corruption among government officials is increasing across regions (Ang, 2020;Heberer, 2014;Piao et al, 2019). As part of the effort to curb political corruption and strengthen its control over local affairs, the central government frequently replaces regional government leadership.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Political Uncertainty and Corporate Investment: Evidence from the Chinese Private Companies

Piao

Jung

2023

Journal of Asian and African Studies

Self Cite

View full text Add to dashboard Cite

China’s political system has continued to maintain a highly centralized regime despite embracing a decentralized development strategy after the 1979 economic reform. The central government frequently makes changes in political leadership to control regional governments. Such political turnover in the regional governments can generate substantial political uncertainty, which affects the overall management direction and environment of Chinese public enterprises. This study analyzes the impact of replacing city-level party secretaries (CPS) on corporate investment in 228 municipal cities in China. Political appointees can replace city-level party secretaries from within and outside the city or from higher levels of the government. Our empirical results show that these kinds of replacements more significantly dampened investment activities in listed private companies than in companies in which the city-level party secretaries have retained their positions. Corporate investment activities decreased more when a city-level party secretary was replaced with a person outside the city or parachuted from central government than when replaced within the city. Moreover, replacement effects were more negative for privatized state-owned enterprises (SOEs) than for the original privately owned companies.

show abstract

Section: Literature Review and Research Questionsmentioning

confidence: 99%

Section: Literature Review and Research Questionsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Political Uncertainty and Corporate Investment: Evidence from the Chinese Private Companies

Piao

Jung

2023

Journal of Asian and African Studies

Self Cite

View full text Add to dashboard Cite

show abstract

“…중국은 사법제도의 부실로 지역경제에 있어 고위급 간부들의 영향력이 막강하다 (Piao et al, 2019). 고위급 간부들은 지역 조세정책 등 경제정책을 결정할 뿐만 아니라 국유기 업의 인사권과 실제 경영에도 큰 영향력을 행사한다 (Chen et al, 2018) (Liu, 1999;Cheng, 2004;Yang, 2013).…”

Section: 중국 국유기업 주요개혁에 관한 논의unclassified

Political Connections and Performance in State-Owned Enterprises: Xi’s Anticorruption Policy Matters

박룡¹,

김주현²,

박상인³

2020

KJPA

View full text Add to dashboard Cite

The Effect of the Xi Jinping Administration’s Anticorruption Campaign on the Performance of State-Owned Enterprises

Piao¹,

Jung²

2021

Asian Survey

View full text Add to dashboard Cite

There has been a debate on how the state-driven anticorruption movement during the Xi Jinping administration has influenced state-owned enterprises (SOEs). Research has examined the relationship between corruption and economic development at the country level in Asia and has found paradoxically that economic growth and high corruption levels can coexist. However, the “Asian paradox” that appears at the country level may be a transitional phenomenon of the short term. Not many researchers have empirically compared individual firm-level performance before and after a strong anticorruption drive, drawing on relevant comparison groups. This study tests whether Xi’s 2012 anticorruption campaign improved SOEs’ performance. With a difference-in-differences method, it explores whether the anticorruption campaign had different effects on the financial performance of SOEs and non-SOEs (private companies). We find that the anticorruption initiative improved SOEs’ financial performance and benefited SOEs more than non-SOEs.

show abstract

Political Uncertainty and Its Effects on Local Fixed-Asset Investments in China: Static and Dynamic Panel Data Analysis

Cited by 3 publications

References 0 publications

Political Uncertainty and Corporate Investment: Evidence from the Chinese Private Companies

Political Uncertainty and Corporate Investment: Evidence from the Chinese Private Companies

Political Connections and Performance in State-Owned Enterprises: Xi’s Anticorruption Policy Matters

The Effect of the Xi Jinping Administration’s Anticorruption Campaign on the Performance of State-Owned Enterprises

Contact Info

Product

Resources

About