A study on the optimal shareholding proportion of the controlling shareholders in the competitive mixed‐ownership enterprises: Evidence from Chinese listed companies

Qiwang Zhang, Xiaorui Wang, Chunhui Huo and Wang Shulin

International Finance, 2023, vol. 26, issue 2, 208-224

Abstract: There is a wide debate on the optimal shareholding proportion of controlling shareholders. Under the background of China's mixed‐ownership reform, this paper focuses on a specific firm setting of mixed‐ownership enterprises in fully competitive industries, and tries to find the heterogeneity in the association between controllers' shareholding and firm performance. Specifically, with a sample of China's A‐share listed companies from 2007 to 2018, we find significant differences in this relationship due to different types of controlling shareholders. The effect of controller shareholding on firm performance is not significant in foreign‐controlled enterprises, while that of private enterprises presents a monotone increasing linear relation with statistical significance. No optimal controlling shareholding interval is found in either foreign‐controlled or private‐controlled enterprise. In state‐controlled enterprises, we find an overall inverted U‐shaped with local stage linear relationship between state‐controlling enterprises' controller shareholding and firm performance. The optimal interval of state‐controlling shareholding is 42%–68%.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/infi.12430

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:bla:intfin:v:26:y:2023:i:2:p:208-224

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1367-0271

Access Statistics for this article

International Finance is currently edited by Benn Steil

More articles in International Finance from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().