Ethnic diversity and firm performance: Evidence from China’s materials and industrial sectors

Sefa Awaworyi Churchill, Maria Rebecca Valenzuela () and Wisdom Sablah ()
Additional contact information
Maria Rebecca Valenzuela: Monash University
Wisdom Sablah: Kwame Nkrumah University of Science and Technology

Empirical Economics, 2017, vol. 53, issue 4, No 15, 1731 pages

Abstract: Abstract Several studies examine the determinants of firm performance in China, but none explores the impact of ethnic diversity on firm performance. This study examines the relationship between ethnic diversity and firm performance in China by drawing on province-level indices of ethnic fractionalization and firm-level indicators of financial performance. We analyse a sample of 1079 Chinese firms in the materials and industrial sectors and find that higher ethnic heterogeneity negatively impacts on firm financial performance in these sectors. This implies that ethnic composition can explain observed divergence in firm performance of Chinese firms and that low-growth firms can gain economic benefits by minimizing ethnic heterogeneity among its workers.

Keywords: Ethnic diversity; Heterogeneity; Firm performance; China; J15; M13; L25 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1007/s00181-016-1174-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:53:y:2017:i:4:d:10.1007_s00181-016-1174-5

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-016-1174-5

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().