Using a unique setting in China, where the geographic distance between Collective firms and local governments is highly persistent due to legal restrictions on land ownership and mobility, we investigate the role of government involvement in small firms. In the analysis of survey responses, we...

Models of political risk predict that increases in political uncertainty cause stock prices to fall, especially for politically sensitive firms. We use the event of the Bo Xilai political scandal in 2012 in China as an exogenous shock to identify the impact of political uncertainty on asset...

This study investigates the dynamics of subnational regional effects (SREs) over time using annual survey data of manufacturing firms in China from 1998 to 2007. SREs increase over time while China's economy grows rapidly and globalizes and its institutions develop. This trend is explained by...