Using the regression discontinuity design of close gubernatorial elections in the U.S., we identify a significant and positive impact of the social networks of corporate directors and politicians on firm value. Firms connected to elected governors increase their value by 3.89%. Political...

Corruption is usually viewed as an impediment to investment and growth. However, China's experience suggests that the issue is probably more complex: In the past government officials would go out of their way to promote investment and development. But since the start of a far-reaching...

In this paper, we exploit a unique event in the Chinese province of Heilongjiang. Seven high level officials were prosecuted for corruption as an unexpected consequence of an ordinary investigation in 2004. This event exposed a significant amount of corruption and resulted in a substantial...