Corporate Control, Restructuring, and Firm Performance in China

Xiang Cai and Chao Chen

Chinese Economy, 2004, vol. 37, issue 3, 67-86

Abstract: For most companies in China, especially privately owned enterprises, going public to raise external funds is very difficult. Therefore, entering the capital market through corporate control of a publicly listed firm provides a plausible channel for private firms to raise funds externally. The decision to acquire a publicly listed company in China is often motivated by buying the "shell" (opportunity of financing through public offering) of the target, instead of operation synergy. When the largest shareholder of a publicly listed firm passes his shares on to a new owner, the newly acquired firm tends to engage in large-scale corporate restructuring. This article focuses on two of the most popular ownership-restructuring strategies utilized in China's capital market: negotiated ownership transfer and ownership transfer without payment. We also examine the performance of acquired firms after the ownership change and the effects that restructuring has upon the firm

Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=TTKB73HMMJLYDPMP (text/html)
Access to full text is restricted to subscribers.

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:mes:chinec:v:37:y:2004:i:3:p:67-86

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MCES20

Access Statistics for this article

More articles in Chinese Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().