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How are political connections valued in China? Evidence from market reaction to CEO succession

He, Lerong; Wan, Hong; Zhou, Xin - In: International Review of Financial Analysis 36 (2014) C, pp. 141-152

Using a sample of listed Chinese firms between 2000 and 2010, the paper analyzes the stock market reaction to CEO succession. We document significantly positive cumulative abnormal returns when CEO succession is accompanied with increased political connections. We also show that the market...

Persistent link: https://www.econbiz.de/10011117758