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
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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。
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来源期刊
CiteScore
4.50
自引率
5.00%
发文量
22
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