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POLITICAL TIES AND FIRM PERFORMANCE IN CHINA: EVIDENCE FROM A QUANTILE REGRESSION

  • Wenjing Xie, Keji Liu, Fei Xie and Haoyuan Ding
Abstract

Whether political ties enhance or weaken firm performance has been widely investigated in a number of studies, including some on China. Based on a database of non-financial A-share listed firms from 2004 to 2012, we study the effects of political ties on firm performance within a quantile regression framework. We find that there is a positive relationship between political ties and economic performance, but that it is diminishing with respect to firm performance. Political ties appear particularly important for weaker firms.

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Journal of East Asian Studies
  • ISSN: 1598-2408
  • EISSN: 2234-6643
  • URL: /core/journals/journal-of-east-asian-studies
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