The effects of government political visits on sustainability of energy enterprises: evidence from rare earth companies in China

IF 2.4 Q2 ECONOMICS
Minghui Li, Chong Liu, Fang Zhang
{"title":"The effects of government political visits on sustainability of energy enterprises: evidence from rare earth companies in China","authors":"Minghui Li, Chong Liu, Fang Zhang","doi":"10.1080/14765284.2021.2019446","DOIUrl":null,"url":null,"abstract":"ABSTRACT Against the backdrop of Sino-US trade friction, we use Chinese President Xi Jinping’s visit to rare earth companies as an exogenous event to investigate market investors’ pursuit effect, on 11 rare earth companies. We find that (1) Xi’s visit had an important signal effect, causing abnormal fluctuations in the stock prices and a significantly positive cumulative average abnormal return (CAAR) of the 11 companies . (2) After government political visits (GPV), firms located in developing regions, younger firms, firms with poor historical performance, and firms with high ownership concentration can generate higher cumulative excess returns than those in developed regions, more established firms, firms with better financial performance, and firms with lower ownership concentration. (3) Our findings can be interpreted from two perspectives: the information asymmetry between market investors and enterprises and the signal effects of GPV. Finally, we discuss policy recommendations from the perspective of information transfer and securities analysts.","PeriodicalId":45444,"journal":{"name":"Journal of Chinese Economic and Business Studies","volume":null,"pages":null},"PeriodicalIF":2.4000,"publicationDate":"2022-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Chinese Economic and Business Studies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/14765284.2021.2019446","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0

Abstract

ABSTRACT Against the backdrop of Sino-US trade friction, we use Chinese President Xi Jinping’s visit to rare earth companies as an exogenous event to investigate market investors’ pursuit effect, on 11 rare earth companies. We find that (1) Xi’s visit had an important signal effect, causing abnormal fluctuations in the stock prices and a significantly positive cumulative average abnormal return (CAAR) of the 11 companies . (2) After government political visits (GPV), firms located in developing regions, younger firms, firms with poor historical performance, and firms with high ownership concentration can generate higher cumulative excess returns than those in developed regions, more established firms, firms with better financial performance, and firms with lower ownership concentration. (3) Our findings can be interpreted from two perspectives: the information asymmetry between market investors and enterprises and the signal effects of GPV. Finally, we discuss policy recommendations from the perspective of information transfer and securities analysts.
政府政治访问对能源企业可持续发展的影响——来自中国稀土企业的证据
(2)经过政府政治访问后,发展中地区的企业、较年轻的企业、历史业绩较差的企业和股权集中度较高的企业产生的累积超额回报高于发达地区的企业、较成熟的企业、财务业绩较好的企业和股权集中度较低的企业。(3)研究结果可以从市场投资者与企业之间的信息不对称和GPV的信号效应两个角度进行解释。最后,我们从信息传递和证券分析师的角度讨论了政策建议。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
4.50
自引率
5.00%
发文量
22
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信