Fig. 17

Politically Connected Would Choose Qianhai—even if companies do worse. The figure shows the regression coefficients for each of the variables shown (above and below each bar) as the dependent variable. These coefficients refer to the effect that political connections play in deciding to list overseas. Overseas listing (if Qianhai would be considered like Hong Kong as "overseas") would help promotion prospects even if the foreign listing correlates with worse financial performance (lower sales, return on assets and cumulative adjusted returns of the company’s shares). The toip coefficients refer to logit coefficients and the bottom to instrumental variables estimates. See econometrics textbook for more on these procedures.