Political determinants of privatizations in China: A natural experiment based on politician career concerns

B-Tier
Journal: Journal of Corporate Finance
Year: 2024
Volume: 87
Issue: C

Authors (4)

Huang, Zhangkai (not in RePEc) Liu, Jinyu (not in RePEc) Ma, Guangrong (not in RePEc) Xu, Lixin Colin (Cheung Kong Graduate School of...)

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

We study the political determinants of the world's largest privatization program by exploiting an age-related discontinuity of politician promotion in China. As a local politician's age exceeds 58, his promotion likelihood quickly diminishes. Consistent with changes in the politician's incentives, we find that Chinese cities whose top officials were older than age 58 were less likely to privatize local state-owned enterprises. Using the promotion discontinuity as an instrument, we report that privatization has significant effects on the firm's efficiency.

Technical Details

RePEc Handle
repec:eee:corfin:v:87:y:2024:i:c:s0929119924000828
Journal Field
Finance
Author Count
4
Added to Database
2026-01-29