Forbes and Billionaires : A Note on the Productive and Unproductive Entrepreneurial Activities in China

This paper establishes a causal relationship between the quality of an institutional environment and the stated types of entrepreneurial activities in China. An event study on the influence of Forbes magazine's list of China's billionaires (the list) on the associated share prices is conducted. Our results show that a significantly positive relationship exists between the quality of an institutional environment and the tendency towards productive entrepreneurial activities