Paragon or pariah? The consequences of being conspicuously rich in China's new economy

B-Tier
Journal: Journal of Corporate Finance
Year: 2014
Volume: 29
Issue: C
Pages: 430-448

Authors (4)

Firth, Michael (not in RePEc) He, Xianjie (not in RePEc) Rui, Oliver M. (China Europe International Bus...) Xiao, Tusheng (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In some cultures vast personal wealth is lauded whereas in others, it is viewed with suspicion and contempt. In recent years, a super rich elite of business people has emerged in China, and, given the country's cultural and socialist past, we believe that people are more likely to react negatively to reports of conspicuous wealth. To test our arguments, we examine the reactions to and consequences of China's entrepreneurs being included on the Hurun Rich List. We find negative consequences for stock market traded firms controlled by the Rich List entrepreneurs: stock prices decline, government subsidies are reduced, and the named entrepreneurs are more likely to be investigated. These effects are strongest in rent-seeking industries and are mitigated by philanthropy.

Technical Details

RePEc Handle
repec:eee:corfin:v:29:y:2014:i:c:p:430-448
Journal Field
Finance
Author Count
4
Added to Database
2026-01-29