State ownership and firm performance: Empirical evidence from Chinese listed companies

By Mei Yu. 2013

211 citations recorded by the source corpus.

Abstract While the relationship between state ownership and firm performance has been widely researched, the empirical evidence has provided mixed results. This study applies panel data regression techniques to 10,639 firm-year observations of non-financial Chinese listed firms during 2003–2010 to examine the relationship between state ownership and firm performance. The results show that state ownership has a U-shaped relationship with firm performance. The Split Share Structure Reform in 2005–2006 played a positive role in enhancing the relationship between state ownership and firm profitability ratios. Although state ownership decreased significantly after 2006, it remains high in strategically important industry sectors such as the oil, natural gas and mining sector and the publishing, broadcasting and media sector. The findings reveal that a higher level of state ownership is superior to a dispersed ownership structure due to the benefits of government support and political connections. The Split Share Structure Reform made previously non-tradable shares legally tradable, improving corporate governance and reducing the negative effect of non-tradable state shares.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/9294829aaa1ee92658438acc4f6f9eaceee3b86e

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. D. Phung
2. Jinsong Tan
3. Liming Zhao
4. Anil V. Mishra
5. Khondkar E. Karim
6. Karen Jingrong Lin

In Economics and Econometrics

1. D. Phung
2. Anil V. Mishra

Citations in the corpus

• In the name of charity: Political connections and strategic corporate social responsibility in a transition economy (2015, background): “NSOEs are privately held and need government protection (e.g., Fisman, 2001; Friedman and Johnson, 1999; Lin et al., 2014; Yu, 2013).”
• Ownership Structure and Firm Performance: Evidence from Vietnamese Listed Firms (2016, methodology): “The standard deviation of Tobin’s Q of listed firms in Vietnam is 0.414, lower than the value of 2.043 in the USA (Coles et al., 2012), and 0.834 in China (Yu, 2013).”