IDEAS home Printed from https://ideas.repec.org/a/mes/chinec/v46y2013i6p32-49.html
   My bibliography  Save this article

Political Connections, Legal Environment, and Corporate Valuation in Chinese Public Family Firms

Author

Listed:
  • Yingkai Tang
  • Shuanghong Ye
  • Jing Zhou

Abstract

Using a uniquely selected family-firm data set, we show that Chinese family firms are, on average, more valuable than nonfamily firms, and that their superior performance can be explained in part by their political connections. Chinese family firms in which the chairperson or CEO is politically active have substantially higher corporate valuations than other family firms. Our findings support the view that the rapid growth of China's private sector is driven by certain alternative mechanisms. As we demonstrate, in an emerging economy, political connections can be a mechanism for responding to the legal system's failure to adequately protect private property rights.

Suggested Citation

  • Yingkai Tang & Shuanghong Ye & Jing Zhou, 2013. "Political Connections, Legal Environment, and Corporate Valuation in Chinese Public Family Firms," Chinese Economy, Taylor & Francis Journals, vol. 46(6), pages 32-49, November.
    • Handle: RePEc:mes:chinec:v:46:y:2013:i:6:p:32-49
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=9773124412P704N3
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:46:y:2013:i:6:p:32-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MCES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.