Chen, Charles J.P.; Li, Zengquan; Su, Xijia; Sun, Zheng - In: Journal of Corporate Finance 17 (2011) 2, pp. 229-243
We examine how the rent-seeking incentives of local government motivate private firms1 listed in China to establish political connections, and whether such connections lead to more concentrated corporate control structures. Our results show that such firms are more likely to establish political...