Corruption in Chinese Privatizations
Raymond Fisman and
Yongxiang Wang
The Journal of Law, Economics, and Organization, 2015, vol. 31, issue 1, 1-29
Abstract:
We document evidence of corruption in Chinese state asset sales. These sales involved stakes in partially privatized firms, providing a benchmark—the price of publicly traded shares—to measure underpricing. Underpricing is correlated with deal attributes associated with misgovernance and corruption. Sales by "disguised" owners that misrepresent their state ownership to elude regulatory scrutiny are discounted 5–7 percentage points more than sales by other owners; related party transactions are similarly discounted. Analysis of subsequent operating performance provides suggestive evidence that aggregate ownership transfers improve profitability, though not in cases where the transfers themselves were corrupted. (JEL D73, G30, L33).
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (19)
Downloads: (external link)
http://hdl.handle.net/10.1093/jleo/ewu003 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Corruption in Chinese Privatizations (2014) 
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: https://EconPapers.repec.org/RePEc:oup:jleorg:v:31:y:2015:i:1:p:1-29.
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
The Journal of Law, Economics, and Organization is currently edited by Andrea Prat
More articles in The Journal of Law, Economics, and Organization from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().