The price of official-business collusion: Evidence from the stock market reaction to “Hunting the Tigers” in China
China Finance Review International
ISSN: 2044-1398
Article publication date: 1 March 2019
Issue publication date: 22 January 2020
Abstract
Purpose
The purpose of this paper is to investigate whether the anti-corruption campaign, “Hunting the Tigers,” incurs a significant short-term loss of shareholders’ returns.
Design/methodology/approach
A sophisticated event study approach is employed.
Findings
The results show that the “Hunting the Tigers” has incurred a significant short-term loss of investment returns for shareholders in China’s main stock market board. In addition, the beginning of a new assault on China’s official mogul corruption in another round of political anti-corruption cycle after the 18th National Congress of the CPC has reduced this price significantly.
Originality/value
This finding should be perceived as the price of the corruption of official-business collusion within capital markets in contemporary China.
Keywords
Citation
Hou, X. and Li, S. (2020), "The price of official-business collusion: Evidence from the stock market reaction to “Hunting the Tigers” in China", China Finance Review International, Vol. 10 No. 1, pp. 52-74. https://doi.org/10.1108/CFRI-07-2018-0114
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited