The promotion tournament as a potentially important incentive mechanism for top management in transition economies has not been examined by the literature on managerial incentives. This paper attempts to fill this important gap in the literature. The paper begins with modifying the empirical...

We provide firm level empirical evidence that the presence of foreign direct investment (FDI) has positively affected the institutional quality of the host regions in China. Specifically, Chinese domestic firms located in regions with a higher level of FDI tend to enjoy a lower level of tax and...

Despite a dramatic rise in the instances of anti-dumping (AD) duties, their impact on the targeted firms is not clear. Using detailed firm level data we find robust evidence that the US AD duty led to over 12 (or five) percent decrease in labor productivity (or TFP) of targeted Chinese firms. We...

This paper presents a few stylized facts on the patterns of China's industrialization by computing a set of multi-dimensional measures on industrial concentration, regional specialization, and clustering based on census data at the firm level in 1995 and 2004. Our results show that China's rapid...

Summary Previous studies have primarily focused on the relative success of collectively owned enterprises (COEs) in China during the early years of reform, but they have ignored the agency problems inherent in this type of organizational form that may be an obstacle to further improving...

Purpose – Market‐based theories assume that firms’ different strategic commitments to businesses lead to different strategic positions within the industry. While the institutional perspective from organization theory emphasizes the institutional pressures which lead to legitimacy and firm...