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When Two Leaders Collide, the Result Can Be Less Fraud

When the head of a family firm ranks lower in the family hierarchy than another leader at that firm, the misalignment can help prevent fraud in the emerging market context. ....

Xiaowei Rose Luo , Yidi Guo , Rudolf Valeria Maag , Professor At Tsinghua University School Of Economics , Assistant Professor , Tsinghua University School , Rose Luo , Family Enterprise , Valeria Maag ,

Why Firms Should Care About the Career Stage of China's Officials

Shuo Chen), we looked at foreign direct investments (FDI) inflows into 224 Chinese cities at the prefecture level, from 2003 to 2010. We showed that the political term, as a core feature of career advancement in state bureaucracy, influences newly appointed government officials’ efforts to attract FDI.
In Chinese bureaucracy, large-scale leadership turnover happens every five years, right on the heels of the Party’s National Congress. Think of it as a window of opportunity for promotions, but with a few constraints. First, the law often mandates how many terms an official can serve in one specific position. Second, promotions are based on tournaments rewarding quantified economic objectives. Third, depending on their rank, officials must retire by age 55, 60 or 65. Under these rigid career progression rules, the optimal strategy is to keep moving before reaching retirement age. ....

Zhitao Zhu , Shuo Chen , Rudolf Valeria Maag , Xiaowei Rose Luois , Party National Congress , Official Political Incentives , Corporate Diversification , Rose Luois , Family Enterprise , Valeria Maag , ருடால்ப் வலேரியா மாக் , கட்சி தேசிய காங்கிரஸ் , அதிகாரி பொலிடிகல் சலுகைகள் , பெருநிறுவன பல்வகைப்படுத்தல் , குடும்பம் நிறுவன , வலேரியா மாக் ,