Political Control, Corporate Governance and Firm Value: The Case of China

Sujuan Xie, Bingxuan Lin and Jingjing Li

Journal of Corporate Finance, 2022, vol. 72, issue C

Abstract: We examine whether requiring a Party committee to lead corporate governance at listed state-owned enterprises (SOEs) affects firm value in China. We find that the market reacts positively to the inclusion of Party leadership in SOEs' governance structure and that the prospect of a crackdown on SOE corruption is likely to be the reason. The China governance model is strikingly different from other known models, and our findings suggest that a convergence of the corporate governance system of different countries due to globalization might not be the only outcome.

Keywords: Politicization of corporate governance; Party committee; Firm value; Chinese SOEs; Anti-corruption (search for similar items in EconPapers)
JEL-codes: G32 G38 P26 P27 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:72:y:2022:i:c:s0929119922000049

DOI: 10.1016/j.jcorpfin.2022.102161

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