The Helping Hand of the State in Chinese Real Estate Firms: Anti-corruption and Liberalization

Gang-Zhi Fan (), Zsuzsa R. Huszar () and Weina Zhang ()
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Gang-Zhi Fan: Konkuk University
Zsuzsa R. Huszar: NUS Business School
Weina Zhang: NUS Business School

International Real Estate Review, 2016, vol. 19, issue 1, 51-97

Abstract: We show that traditional western style corporate governance tools are ineffective in Chinese real estate firms by using data from 2000 to 2012. Instead, we find evidence of effective state governance, such as corruption cleanups and financial market liberalization. Specifically, firms with fewer state connections experience better performance in provinces with greater corruption prosecutions and after 2006 with accelerated stock market liberalization. Overall, our results suggest that the Chinese real estate industry is becoming more market-oriented with assistance from the state.

Keywords: China; Corporate Governance; Corruption; Emerging Market; Executive Compensation; Financial Market Liberalization; Real Estate; State-owned Enterprises; State Governance (search for similar items in EconPapers)
JEL-codes: L85 (search for similar items in EconPapers)
Date: 2016
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