The price of official-business collusion

Xiaohui Hou (School of Economics and Finance, Xi’an Jiaotong University, Xi’an, China)
Shuo Li (School of Economics and Finance, Xi’an Jiaotong University, Xi’an, China)

China Finance Review International

ISSN: 2044-1398

Publication date: 1 March 2019



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.


A sophisticated event study approach is employed.


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.


This finding should be perceived as the price of the corruption of official-business collusion within capital markets in contemporary China.



Hou, X. and Li, S. (2019), "The price of official-business collusion", China Finance Review International, Vol. ahead-of-print No. ahead-of-print.

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