Purpose: The purpose of this paper is to examine whether the political connections of listed firms in China affect how the market reacts to cases of financial misrepresentation investigated by the regulatory authorities. Design/methodology/approach: The authors use an event study method and the...

In this study we investigate whether and how a firm's investment activities are affected by the financial information of peer firms on merger and acquisition (M&A) efficiency. Using changes in M&A accounting performance to measure efficiency, we find a positive association between the post-M&A...

We study the value of political ties for firms experiencing enforcement actions. We find that stronger corporate political ties alleviate the negative market shocks caused by enforcement action announcements of listed firms in China, and the relationship between political ties and market...

This paper investigates the intra-industry spillover effects of corporate scandals in China. Using corporate scandal announcements, we show how a contagion effect spreads to peer firms depending on the quality of corporate governance and political connections at these firms. Good corporate...