 Imprinting and peer effects in acquiring state ownership: Evidence from private firms in ChinaBin Li, Ailing Pan, Lei Xu, Xin Liu and Shuqian Qin Pacific-Basin Finance Journal, 2020, vol. 61, issue C Abstract: China has recently launched a historical mixed ownership reform. We examine both imprinting and peer effects in private takeovers of state ownership through a proprietary dataset of listed firms on the Shanghai and Shenzhen Stock Exchanges. Our findings suggest that first experience affects private firm's takeover decisions, in that negative experience of either poor post-takeover performance or high takeover premium impedes subsequent takeovers. In addition, private firm's political ties alleviate the negative imprinting effect. However, private firms' business ties strengthen the negative imprinting effect. Private firms without antecedent experience tend to follow their peers in taking over state ownership. Antecedent failures can therefore be passed by the peers to potential acquirers. Our findings have policy implications in the context of China's concurrent state-owned enterprise (SOE) reforms. Keywords: State ownership; Private takeover; Imprinting; Peer effect; Social capital (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:61:y:2020:i:c:s0927538x19302550 DOI: 10.1016/j.pacfin.2020.101337 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.