Trust, Politics and Post-IPO Performance: SOEs vs. the Private Sector
Bill Francis, Iftekhar Hasan, Xian Sun, Mingming Zhou
Economic and Political Studies,
forthcoming
Abstract
This paper empirically investigates the role of social trust in the long-term performance of the initial public offerings (IPOs) in China, controlling for the formal institutional environment. We find that privately owned or smaller IPO firms experience significantly better post-IPO performance when they are incorporated in regions with more social trust. The state-owned and bigger IPO firms, on the other hand, experience better long-term post-IPO performance when they are incorporated in regions with stronger formal institutions (e.g. court enforcement and contract holding). Political pluralism turns out to benefit all IPOs in the long term. In addition, our evidence shows that stronger social trust substitutes for the quality of court enforcement but complements the role of contract holding. These results are robust after controlling for alternative definitions of ownership, outliers, non-linear effects of institutions, and the potential endogeneity of institutions in the model.
Read article
Where to Go? High-skilled Individuals’ Regional Preferences
Sabrina Jeworrek, Matthias Brachert
IWH Discussion Papers,
No. 27,
2022
Abstract
We conduct a discrete choice experiment to investigate how the location of a firm in a rural or urban region affects job attractiveness and contributes to the spatial sorting of university students and graduates. We characterize the attractiveness of a location based on several dimensions (social life, public infrastructure, connectivity) and combine this information with an urban or rural attribution. We also vary job design as well as contractual characteristics of the job. We find that job offers from companies in rural areas are generally considered less attractive. This is true regardless of the attractiveness of the region. The negative perception is particularly pronounced among persons with urban origin and singles. These persons rate job offers from rural regions significantly worse. In contrast, high-skilled individuals who originate from rural areas as well as individuals with partners and kids have no specific preference for jobs in urban or rural areas.
Read article
Postdoctoral Researcher in Financial Economics (f/m/x, 100%) [2023-06]
Vacancy Postdoctoral Researcher in Financial Economics (f/m/x,...
See page
IWH Doctoral Programme in Economics
Why Doctoral Studies at IWH? ...
See page
1 student assistant (f/m/x) (CompNet)
Student assistant (f/m/x) (CompNet) The Halle Institute for Economic Research (IWH)...
See page
Mental Health
Mental Health Mental health encompasses emotional, psychological, and social well-being, influencing cognition, perception, and behavior. According to World Health...
See page
East Germany
The Nasty Gap 30 years after unification: Why East Germany is still 20% poorer than the...
See page
Wiederhold wp
Why Is the Roy-Borjas Model Unable to Predict International Migrant Selection on Education? Evidence from Urban and Rural Mexico ...
See page
Payroll and VBL
Payroll and VBL Payroll The monthly earnings statement for IWH employees is made available online via the LuGIS portal . You will receive two letters with the access...
See page
Transformation tables for administrative borders in Germany
Transformation tables for administrative borders in Germany The state has the ability...
See page