Economics at your fingertips  

The value of corporate governance: Evidence from the Chinese anti-corruption campaign

Yishu Fu

The North American Journal of Economics and Finance, 2019, vol. 47, issue C, 461-476

Abstract: This paper studies the value of different corporate governance mechanisms for Chinese-listed firms during the ongoing anti-corruption campaign in China. The results show that firms associated with people that are indicted as part of the anti-corruption campaign lose significant market value after prosecution announcement events. Good external governance can positively moderate the short-term impact of such negative events. In addition, external governance also appears to be more relevant in reducing stock price crash risk in the longer term, and this effect is more evident for the corruption-connected firms. The findings raise questions about the efficiency of imposing internal governance mechanisms on Chinese companies.

Keywords: Corporate governance; Stock price crash risk; Anti-corruption campaign; China (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

The North American Journal of Economics and Finance is currently edited by Hamid Beladi

More articles in The North American Journal of Economics and Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-12-10
Handle: RePEc:eee:ecofin:v:47:y:2019:i:c:p:461-476