Foreign ownership and productivity in Chinese newly listed firms: the moderating roles of founder’s human capital and social ties

Da Teng (), Chengchun Li () and Sailesh Tanna ()
Additional contact information
Da Teng: Beijing University of Chemical Technology
Chengchun Li: Changshu Institute of Technology
Sailesh Tanna: Coventry University

Asia Pacific Journal of Management, 2022, vol. 39, issue 3, No 14, 1125-1159

Abstract: Abstract This paper studies the effects of foreign ownership on firm-level productivity and examines the different moderating roles of the firm-founder’s human capital and social ties on the foreign ownership - productivity link. Leveraging a unique sample of 428 small and medium-sized firms listed on the Growth Enterprise Market in the Shenzhen Stock Exchange between 2009 and 2016, we find that the foreign ownership’s contribution to productivity is not linear and varies across different quantiles of the productivity distribution. Our findings also show that the founder’s education and foreign experience strengthen the foreign ownership - productivity link, while the founder’s political and managerial ties weaken it. Our results reveal the strategic importance of the founder and contribute to an improved understanding of why firms vary in their ability to enhance productivity in emerging economies.

Keywords: Founder; Human capital; Social ties; Foreign ownership; Productivity (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s10490-021-09758-w 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:kap:asiapa:v:39:y:2022:i:3:d:10.1007_s10490-021-09758-w

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10490/PS2

DOI: 10.1007/s10490-021-09758-w

Access Statistics for this article

Asia Pacific Journal of Management is currently edited by Jane Lu

More articles in Asia Pacific Journal of Management from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().