Political Capital and CEO Entrenchment: Evidence from CEO Turnover in Chinese Non-SOEs
Previous theoretical and empirical studies suggest that CEOs' political connections are valuable to firms. We examine whether such connections become entrenched if the expected political capital fails to materialize and the firm lacks other types of political power. Using a sample of listed non-SOEs in China, we show that politically connected CEOs have a lower probability of turnover and cause a weaker turnover-performance sensitivity than non-politically connected CEOs. Further analyses show...[Show more]
|Collections||ANU Research Publications|
|Source:||Journal of Corporate Finance|
|01_Cao_Political_Capital_and_CEO_2017.pdf||279.15 kB||Adobe PDF||Request a copy|
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