Is the Chinese Anticorruption Campaign Authentic? Evidence from Corporate Investigations

References

• Agarwal S, Qian W, Seru A, Zhang J (2020) Disguised corruption: Evidence from consumer credit in China. J. Financial Econom. 137(2):430–450.Crossref, Google Scholar
• Aggarwal RK, Meschke F, Wang TY (2012) Corporate political donations: Investment or agency? Bus. Politics 14(1):1–40.Crossref, Google Scholar
• Agrawal A, Walking R (1994) Executive careers and compensation surrounding takeover bids. J. Finance 49(3):985–1014.Crossref, Google Scholar
• Allen F, Qian J, Qian M (2005) Law, finance, and economic growth in China. J. Financial Econom. 77(1):57–116.Crossref, Google Scholar
• Ang A, Bai J, Zhou H (2019) The great wall of debt: Real estate, political risk, and Chinese local government financing cost. Working paper, Georgetown McDonough School of Business, Washington, D.C.Google Scholar
• Bai CE, Hsieh CT, Song Z (2016) The long shadow of China’s fiscal expansion. Brookings Papers. Econom. Act (Fall):129–165.Crossref, Google Scholar
• Banyan (2014) Tiger in the net. The Economist. Retrieved from https://www.economist.com/china/2014/12/11/tiger-in-the-net.Google Scholar
• Bardhan P (1997) Corruption and development: A review of issues. J. Econom. Literature 35(3):1320–1346.Google Scholar
• Beck T, Demirguc-Kunt A, Maksimovic V (2005) Financial and legal constraints to growth: does firm size matter? J. Finance 60(1):137–177.Crossref, Google Scholar
• Bergstresser D, Philippon T (2006) CEO incentives and earnings management. J. Financial Econom. 80(3):511–529.Crossref, Google Scholar
• Bessembinder H, Zhang F (2013) Firm characteristics and long-run stock returns after corporate events. J. Financial Econom. 109(1):83–102.Crossref, Google Scholar
• Bessembinder H, Zhang F (2022) Long run stock returns after corporate events revisited. Critical Finance Rev. 11. Forthcoming.Crossref, Google Scholar
• Bessembinder H, Cooper MJ, Zhang F (2019) Characteristic-based benchmark returns and corporate events. Rev. Financial Stud. 32(1):75–125.Crossref, Google Scholar
• Biddle GC, Hilary G, Verdi RS (2009) How does financial reporting quality relate to investment efficiency? J. Accounting Econom. 48(2–3):112–131.Crossref, Google Scholar
• Borokhovich K, Brunarski K, Parrino R (1997) CEO contracting and antitakeover amendments. J. Finance 52(4):1495–1517.Crossref, Google Scholar
• Branigan T (2015) Politburo, army, casinos: China’s corruption crackdown spreads. The Guardian (February 14, 2015). Retrieved from https://www.theguardian.com/world/2015/feb/14/china-corruption-crackdown-spreads-xi-jinping.Google Scholar
• Burgstahler D, Dichev I (1997) Earnings management to avoid earnings decreases and losses. J. Accounting Econom. 24(1):99–126.Crossref, Google Scholar
• Cai H, Fang H, Xu LC (2011) Eat, drink, firms, government: An investigation of corruption from the entertainment and travel costs of Chinese firms. J. Law Econom. 54(1):55–78.Crossref, Google Scholar
• Calomiris CW, Fisman R, Wang Y (2010) Profiting from government stakes in a command economy: Evidence from Chinese asset sales. J. Financial Econom. 96(3):399–412.Crossref, Google Scholar
• Cameron AC, Gelbach JB, Miller DL (2008) Bootstrap-based improvements for inference with clustered errors. Rev. Econom. Statist. 90(3):414–427.Crossref, Google Scholar
• Chen T, Kung JK (2019) Busting the “princelings”: The campaign against corruption in china’s primary land market. Quart. J. Econom. 134(1):185–226.Crossref, Google Scholar
• Chen Y, Liu M, Su J (2013) Greasing the wheels of bank lending: Evidence from private firms in China. J. Banking Finance 37(7):2533–2545.Crossref, Google Scholar
• Chen G, Firth M, Gao DN, Rui OM (2006) Ownership structure, corporate governance, and fraud: Evidence from China. J. Corporate Finance 12(3):424–448.Crossref, Google Scholar
• Chen CJP, Li Z, Su X, Sun Z (2011) Rent-seeking incentives, corporate political connections, and the control structure of private firms: Chinese evidence. J. Corporate Finance 17(2):229–243.Crossref, Google Scholar
• Chen Q, Chen X, Schipper K, Xu Y, Xue J (2012) The sensitivity of corporate cash holdings to corporate governance. Rev. Financial Stud. 25(12):3610–3644.Crossref, Google Scholar
• Cheung YL, Rau PR, Stouraitis A (2010) Helping hand or grabbing hand? Central vs. local government shareholders in Chinese listed firms. Rev. Finance 14(4):669–694.Crossref, Google Scholar
• Cohen L, Malloy C (2014) Friends in high places. Amer. Econom. J. Econom. Policy 6(3):63–91.Crossref, Google Scholar
• Cohen L, Coval J, Malloy C (2011) Do powerful politicians cause corporate downsizing? J. Political Econom. 119(6):1015–1060.Crossref, Google Scholar
• Coles JL, Daniel ND, Naveen L (2014) Co-opted boards. Rev. Financial Stud. 27(6):1751–1796.Crossref, Google Scholar
• Cohen L, Frazzini A, Malloy C (2010) Sell-side school ties. J. Finance 65(4):1409–1437.Crossref, Google Scholar
• Core J, Guay W (1999) The use of equity grants to manage optimal equity incentive levels. J. Accounting Econom. 28(2):151–184.Crossref, Google Scholar
• Dass N, Nanda V, Xiao CS (2014) Firms in corrupt environments and the value of corporate governance. Working paper, Georgia Institute of Technology, Atlanta.Google Scholar
• Ding H, Fang H, Lin S, Shi K (2020) Equilibrium consequences of corruption on firms: Evidence from China’s anti-corruption campaign. NBER Working paper no. 26656. National Bureau of Economic Research, Cambridge, MA.Google Scholar
• Duchin R, Sosyura D (2012) The politics of government investment. J. Financial Econom. 106(1):24–48.Crossref, Google Scholar
• Faccio M (2006) Politically connected firms. Amer. Econom. Rev. 96(1):369–386.Crossref, Google Scholar
• Fan JPH, Wei KCJ, Xu X (2011) Corporate finance and governance in emerging markets: A selective review and an agenda for future research. J. Corporate Finance 17(2):207–214.Crossref, Google Scholar
• Fan JPH, Guan F, Li Z, Yang YG (2014) Relationship networks and earnings informativeness: Evidence from corruption cases. J. Bus. Finance Accounting 41(7–8):831–866.Crossref, Google Scholar
• Fan JPH, Wong TJ, Zhang T (2007) Politically connected CEOs, corporate governance and Post-IPO performance of China’s newly partially privatized firms. J. Financial Econom. 84(2):330–357.Crossref, Google Scholar
• Fang H, Gu Q, Zhou L (2019) The gradients of power: Evidence from the Chinese housing market. J. Public Econom. 176:32–52.Crossref, Google Scholar
• Fisman R, Wang Y (2014) Corruption in Chinese privatizations. J. Law Econom. 31(1):1–29.Google Scholar
• Fisman R, Wang Y (2015) The mortality cost of political connections. Rev. Econom. Stud. 82(4):1346–1382.Crossref, Google Scholar
• Giannetti M, Liao G, You J, Yu X (2021) The externalities of corruption: Evidence from the entrepreneurial firms in China. Rev. Finance 25(3):629–667.Crossref, Google Scholar
• Goh JR, Ru H, Zou K (2020) Force behind anti-corruption: Evidence from China. Working paper, Nanyang Technological University, Singapore.Google Scholar
• Gow ID, Ormazabal G, Taylor DJ (2010) Correcting for cross‐sectional and time‐series dependence in accounting research. Accounting Rev. 85(2):483–512.Crossref, Google Scholar
• Greene WH (2001) Estimating econometric models with fixed effects. Working paper, New York University, New York.Google Scholar
• Griffin JM, Hirschey NH, Kelly PJ (2011) How important is the financial media in global markets? Rev. Financial Stud. 24(12):3941–3992.Crossref, Google Scholar
• Gurun UG, Stoffman N, Yonker SE (2018) Trust busting: The effect of fraud on investor behavior. Rev. Financial Stud. 31(4):1341–1376.Crossref, Google Scholar
• Hao Z, Liu Y, Zhang J, Zhao X (2020) Political connection, corporate philanthropy and efficiency: Evidence from China’s anti-corruption campaign. J. Comp. Econom. 48(3):688–708.Crossref, Google Scholar
• Hayn C (1995) The information content of losses. J. Account. Econom. 20(2):125–153.Crossref, Google Scholar
• Hu J, Li X, Duncan K, Xu J (2020) Corporate relationship spending and stock price crash risk: Evidence from China’s anti-corruption campaign. J. Bank. Finance 113:1–21.Crossref, Google Scholar
• Huang M (2016) Financial reporting quality in corrupt firms: Evidence from the foreign corrupt practices act. Working paper, National University of Singapore, Singapore.Google Scholar
• Jian M, Wong TJ (2010) Propping through related party transactions. Rev. Accounting Stud. 15(1):70–105.Crossref, Google Scholar
• Jiang F, Kim K (2015) Corporate governance in China: A modern perspective. J. Corporate Finance 32:190–216.Crossref, Google Scholar
• Jiang G, Lee CMC, Yue H (2010) Tunneling through intercorporate loans: The China experience. J. Financial Econom. 98(1):1–20.Crossref, Google Scholar
• Ke B, Liu N, Tang S (2018) The effect of anti-corruption campaign on shareholder value in a weak institutional environment: Evidence from China. Working paper, National University of Singapore, Singapore.Google Scholar
• Li C, McElveen R (2014) Debunking Misconceptions about Xi Jinping’s Anti-Corruption Campaign (Brookings). Retrieved from https://www.chinausfocus.com/political-social-development/debunking-misconceptions-about-xi-jinpings-anti-corruption-campaign/.Google Scholar
• Li B, Wang Z, Zhou H (2021) China’s anti-corruption campaign and credit reallocation from SOEs to non-SOEs. Working paper, Tsinghua University PBC School of Finance, Beijing, China.Google Scholar
• Li H, Meng L, Wang Q, Zhou LA (2008) Political connections, financing and firm performance: Evidence from Chinese private firms. J. Developing Econom. 87(2):283–299.Crossref, Google Scholar
• Lin C, Morck R, Yeung B, Zhao X (2018) Anti-corruption reforms and shareholder valuations: Event study evidence from China. Working paper, The University of Hong Kong, Hong Kong SAR, China.Google Scholar
• Liu Q, Lu ZJ (2007) Corporate governance and earnings management in the Chinese listed companies: A tunneling perspective. J. Corporate Finance 13(5):881–906.Crossref, Google Scholar
• Liu LX, Shu H, Wei KCJ (2017) The impacts of political uncertainty on asset prices: Evidence from the Bo scandal in China. J. Financial Econom. 125(2):286–310.Crossref, Google Scholar
• Magnus G (2015) Xi’s anti-corruption campaign key to China’s prospects. Retrieved April 9, 2015, https://georgemagnus.com/xis-anti-corruption-campaign-key-to-chinas-prospects/.Google Scholar
• Olken BA (2007) Monitoring corruption: Evidence from a field experiment in Indonesia. J. Political Econom. 115(2):200–249.Crossref, Google Scholar
• Pan X, Tian G (2020) Political connections and corporate investments: Evidence from the recent anti-corruption campaign in China. J. Banking Finance 119:105–108.Crossref, Google Scholar
• Pei M (2007) Corruption threatens China’s future. Policy Brief 55:1–8.Google Scholar
• Petersen MA (2009) Estimating standard errors in finance panel data sets: Comparing approaches. Rev. Financial Stud. 22(1):435–480.Crossref, Google Scholar
• Qin B, Strömberg D, Wu Y (2018) Media bias in China. Amer. Econom. Rev. 108(9):2442–2476.Crossref, Google Scholar
• Reinikka R, Svensson J (2004) Local capture: Evidence from a central government transfer program in Uganda. Quart. J. Econom. 119(2):679–705.Crossref, Google Scholar
• Song Z, Xiong W (2018) Risks in China’s financial system. Annu. Rev. Financial Econom. 10:261–286.Crossref, Google Scholar
• Svensson J (2005) Eight questions about corruption. J. Econom. Perspective 19(3):19–42.Crossref, Google Scholar
• Thompson SB (2011) Simple formulas for standard errors that cluster by both firm and time. J. Financial Econom. 99(1):1–10.Crossref, Google Scholar
• Wei S (2000) How taxing is corruption on international investors. Rev. Econom. Statist. 82(1):1–11.Crossref, Google Scholar
• Wei S (2001) Corruption in economic transition and development: Grease or sand? Working paper, Harvard University, Cambridge, MA.Google Scholar
• Xu G, Yano G (2017) How does anti-corruption affect corporate innovation? Evidence from recent anti-corruption efforts in China. J. Comp. Econom. 45(3):498–519.Crossref, Google Scholar
• You J, Zhang B, Zhang L (2018) Who captures the power of the pen? Rev. Financial Stud. 31(1):43–96.Crossref, Google Scholar