关键词: 董事 , 来源地特征 , 政治关联 , 公司价值

Abstract:

On Oct 30, 2013, the Central Committee of the Communist Party in China issued No18 Document to ban government officials taking any positions at Chinese firms. Based on this background, we employ all resigned directors of Chinese stock markets from Oct 30,2013 to Oct 30, 2014 as the sample to explore the correlation between directors rank of political connections and firm value, and how does this correlation been affected by characteristics of directors location. We find that the higher the rank of politically connected directors, the more significant the firm value drops; moreover, the ranks of political connections of nonlocal directors, Peking directors and both exert more significant influence on the decreasing of firm value after the resignation announcement; additionally, around the issue of No18 Document, the value of politically connected firms drop more than that of nonpolitically connected firms; firms with higher political connections lose more value than that of firms with lower political ties. Our study suggests that seeking directors with higher political rank, especially nonlocal directors or directors from power center, is a vital channel that the firm constructs political connections.

Key words: directors , characteristics of locations , political connection , firm value