China Studies seminar series on “Compliance in Non-compliant Territories: How Jurisdictional Exposure Regulates Multinational Corporations” by Prof. Jian Xu (Assistant Professor, Department of Political Science, The National University of Singapore).
Date: 22 April, 2025 (Tuesday)
Time: 16:00 – 17: 30 PM (HKT)
Venue: WMY_407, CUHK
Language: English
Kindly register through the QR code provided on the attached poster or the direct
https://cloud.itsc.cuhk.edu.hk/webform/view.php?id=13708244
Abstract:
This study investigates how domestic judicial rulings regulate multinational corporations (MNCs) in foreign territories via jurisdictional ties, focusing on the U.S. Foreign Corrupt Practices Act (FCPA). We analyze a 2014 U.S. appellate court ruling expanding FCPA jurisdiction to include corrupt transactions with state-owned enterprises (SOEs). Employing a difference-in-differences design, we evaluate financial performance impacts on China-based firms listed on the U.S. stock market. Results show that U.S.-listed firms in China’s state-dominated sectors faced significant market performance declines post-ruling, suggesting heightened FCPA scrutiny curbed corrupt rent-seeking. In contrast, non-U.S.-exposed firms gained advantages, with improved profit margins and market share as their competitors faced enhanced bribery constraints. This research identifies a novel mechanism of transnational regulation, demonstrating how domestic judicial decisions can influence corporate behavior in non-compliant foreign environments via jurisdictional exposure. The study advances our understanding of the extraterritorial reach of domestic judicial institutions and their role in shaping global corporate conduct.
Biography:
Jian Xu is an Assistant Professor of Political Science at the National University of Singapore (NUS). He received his PhD degree in Political Science from Emory University. His research interests lie in international and comparative political economy, focusing on government-business relations, interactions between rule of law institutions and corruption, and the risk-mitigation strategies of multinational corporations (MNCs) operating across diverse jurisdictions. His research has appeared in journals including International Organization, Comparative Political Studies, Review of International Political Economy, among others.
