Financial distress among listed firms in China: tunnelling and political connections /
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(Published version)
Date
2018
Authors
He, Yu,
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thesis
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Abstract
This research explores financial distress among Chinese listed firms during the time period 1999-2015. Unlike prior literature, this study examines firm performance, financial distress and distress recovery from two aspects: Tunnelling behaviour and political connection. These two aspects have been demonstrated to impact strongly on Chinese stock markets due to the unique national institutional background. My results show that tunnelling behaviour not only leads to firm financial distress but also prohibits firms from distress recovery. Using two measures of political connection, I find that such connection has strong explanation power on financial distress and recovery. Specifically, central and local government political connections tend to have different impacts on financial distress. Considering firms of varied nature, this study additionally analyses differences in distress outcomes between politically connected private firms and state-owned enterprises, finding that private firms with local government connections are less likely to emerge from financial distress. These empirical results hold when controlling for potential endogeneity and diverse financial distress measurements.
School/Discipline
University of South Australia. School of Commerce.
School of Commerce
School of Commerce
Dissertation Note
Thesis (PhD(Finance))--University of South Australia, [2018].
Provenance
Copyright [2018] Yu He.
Description
1 ethesis (xvii, 284 pages) :
illustrations.
Includes bibliographical references (pages 229-241)
illustrations.
Includes bibliographical references (pages 229-241)
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