Xiongyuan Wang,Shan Wang(2012)Chairman’s government background, excess employment外文电子书籍.pdfVIP

China Journal of Accounting Research xxx (2012) xxx–xxx Contents lists available at SciVerse ScienceDirect China Journal of Accounting Research journal homepage: www.else /locate/cjar Chairman’s government background, excess employment and government subsidies: Evidence from Chinese local state-owned enterprises Xiongyuan Wang a, Shan Wang b,⇑ a School of Accounting, Zhongnan University of Economics and Law, China b Antai College of Economics and Management, Shanghai JiaoTong University, China A R T I C L E I N F O A B S T R A C T Article history: Local state-owned enterprises (SOEs) in China continue to face government Received 28 June 2012 interference in their operations. They are influenced both by the government’s Accepted 28 August 2012 “grabbing hand” and by its “helping hand.” Our study examines how SOE chair- Available online xxxx men with connections to government influence their firm’s employment policies and the economic consequences of overstaffing. Using a sample of China’s listed JEL classification: local state-owned enterprises, we find that the scale of overstaffing in these SOEs D73 is negatively related to the firms’ political connections to government. However, G28 this relationship turns positive when the firm’s chairman has a government back- G32 ground. Appointing chairmen who have government backgrounds is a mecha- H2 nism through which the government can intervene in local SOEs and influence