To understand the mechanisms through which political connections impact firm value and performance, we study how political connections affect connected firms and their peers. Following the announcement of anti-corruption investigations in China, we show that the industry peers of firms connected...

Chinese farmers rely increasingly on nonfarm activities to enhance their incomes. Previous studies identify human capital as a key factor in the selection of workers in the rural nonfarm sector, but these studies ignore the role of social networks, i.e., guanxi. Using data from a detailed...