报告题目：Political Participation and Entrepreneurial Initial Public Offerings in
China
主讲人：冯旭南 博士 香港城市大学博士后
主持人：王一鸣 教授
时 间：
2010年11月25日下午
2:30-4:00
地 址：8797威尼斯老品牌大楼301会议室
Abstract: This paper examines the value of political participation for entrepreneurial firms in China.Using a unique sample of all initial public offerings by entrepreneurial firms during 1994-2007 and political participation of the controlling entrepreneurs, we test the hypothesis that firms with entrepreneurs that participate in politics are able to exploit rent-seeking opportunities that normal firms do not have access to. We document that the long-run stock performance after the event of firms with politically active entrepreneurs is uperior to that of ordinary entrepreneurial firms. Our results also show that political participation has a significant positive effect on change in operating performance and that first-day returns are negatively related to political participation. Moreover, we find that economic development and local institutions are important for rent-seeking opportunities. Firms located in poorer provinces, provinces with lower levels of marketization, or in provinces never leased out to foreign powers before 1949 exhibit higher levels of rent seeking through entrepreneurs’ political participation. The results indicate that business-related incentives for becoming politically active in
China
dominate the intention of working for the common good or social status incentives. Political rent seeking in
China
thus plays an portant role for private entrepreneurs and their decision to participate in politics.
