 Corruption and private firms' survival in transition economies: Evidence from ChinaJianhong Zhang, Shifan Quan and Jiangang Jiang China Economic Review, 2019, vol. 57, issue C Abstract: This article explores whether and how regional corruption determines private firms' survival in transition economies from a political favoritism perspective. We argue that regional corruption facilitates the likelihood of private firms' survival, but the magnitude to which private firms' survival responses to corruption is contingent on not only officials' power and power stability but also firms' power. Building on firm-level data and regional registered cases of corruption from 1998 to 2012, the findings confirm that corruption has a positive effect on private firms' likelihood of survival in China. Our studies also demonstrate that the positive effect is strengthened before the 16th National Congress of the Chinese Communist Party in 2002, in the case of regulated industry, regional leadership stability, large size, low export and privatized firms. Asset turnover and credit are viewed as the channels through which corruption fosters private firms' likelihood of survival. Keywords: Corruption; Political favoritism; Survival; Private firms; Business discrimination (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:57:y:2019:i:c:s1043951x19301002 DOI: 10.1016/j.chieco.2019.101339 Access Statistics for this article China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu More articles in China Economic Review from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.