Legal Person Ownership, Diversification Strategy and Firm Profitability in China

Andrew Delios () and Zhi Wu

Journal of Management & Governance, 2005, vol. 9, issue 2, 169 pages

Abstract: Legal person ownership is the second largest ownership identity in China’s public listed companies, yet it has received limited attention compared to the already extensive research on China’s state ownership. We investigate the relationships between the concentration of legal person shareholding, product diversification and firm performance for China’s listed companies. We find that relying on legal person shareholder as a lever for more profit-oriented governance cannot be an unqualified linear prescription, but it has this effect only if legal person shareholders have a high level of ownership concentration and are not in a minority ownership position. Copyright Springer 2005

Keywords: agency theory; diversification strategy; legal person shareholding (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (21)

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DOI: 10.1007/s10997-005-4034-9

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