POLITICAL TIES AND FIRM PERFORMANCE IN CHINA: EVIDENCE FROM A QUANTILE REGRESSION. (22nd August 2017)

• Record Type: Journal Article
• Authors: Xie, Wenjing; Liu, Keji; Xie, Fei; Ding, Haoyuan
• Is Part Of: Journal of East Asian studies. Volume 17:Number 3(2017)
• Page Start: 331
• Page End: 341
• Publication Date: 2017-08-22
• Subjects: political tie, -- firm performance, -- quantile regression, -- diminishing effect; East Asia -- Periodicals; East Asia -- Politics and government -- Periodicals; East Asia -- Economic conditions -- Periodicals; East Asia -- Social conditions -- Periodicals; 950.05
• DOI: 10.1017/jea.2017.12
• Languages: English
• ISSNs: 1598-2408

Abstract

Abstract: Whether political ties enhance or weaken firm performance has been widely investigated in a number of studies, including some on China. Based on a database of non-financial A-share listed firms from 2004 to 2012, we study the effects of political ties on firm performance within a quantile regression framework. We find that there is a positive relationship between political ties and economic performance, but that it is diminishing with respect to firm performance. Political ties appear particularly important for weaker firms.