About twenty years ago, China set about reforming its moribund economy by introducing certain elements of free market capitalist economics. One reform was the partial privatization of many State Owned Enterprizes (SOEs) and listing the shares in them on the stock exchanges of Shanghai and...

The existing literature on political capital and bank lending largely overlooks the role of the political environment. Using the theories of the political marketplace and political instability, we examine the effect of political capital on firms' access to bank loans in relation to the political...

Using the theories of the political marketplace and political instability, we examine the effect of political capital on firms' access to bank loans in relation to the political environment. In particular, we use political capital inequality and political instability to characterize the...