We examine the diversification patterns of almost all publicly listed non-financial companies in China during the 2001 to 2005 period. More than 70 percent of the firms in our sample are diversified. We document that patterns of diversification strongly depend on firms' political connections....

An important result in interest group theory and political economy is that small groups are more influential than their size would lead us to expect. In this study, we document that the opposite holds for political mobilization. Citizens are more likely to participate in elections if they belong...