Ownership structure and firm performance: Evidence from the Chinese corporate reform

Young-Sam Kang and Byung-Yeon Kim

China Economic Review, 2012, vol. 23, issue 2, 471-481

Abstract: We employ a new classification of ownership identity to analyze the impact of ownership structure on enterprise performance in China. Using both fixed effects model and Generalized Methods of Moments (GMM), this study finds that marketized state-owned enterprises outperform firms controlled by the government, indicating that partial privatization of state-owned Chinese firms improves corporate governance. Non-controlling large shareholders of marketized state-owned enterprises and private enterprises are found to play active roles in corporate governance. Lastly, there is evidence that ownership concentration of a controlling shareholder decreases the incentives to expropriate minority shareholders.

Keywords: Privatization; Gradual approach; Ownership structure; Marketized state-owned enterprises; China (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:23:y:2012:i:2:p:471-481

DOI: 10.1016/j.chieco.2012.03.006

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