Is the Chinese Anti-Corruption Campaign Effective?

Chinese firms with characteristics commonly associated with corporate self-dealing are more likely to have executives investigated by the anti-corruption campaign. University affiliations with the top current leaders are associated with a reduced probability of investigation, but general political affiliations are associated with more investigations. We then assess the campaign’s effect on Chinese firms more broadly, and find that with the exception of entertainment expenditure there has been little overall decrease in measures of potential corporate self-dealing. Overall, our findings suggest that the campaign is targeting corrupt managers, could contain a political component, and has yet to change Chinese corporate culture.