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State-owned enterprises going public "The case of China"

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Author Info
Xiaozu Wang
Lixin Colin Xu
Tian Zhu

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Abstract

Public listing is a key reform measure for large state-owned enterprises (SOEs) in China. We find evidence that public listing lowers state ownership significantly, lessens firms' reliance on debt finance, and allows firms to increase capital expenditure, at least temporarily. We also find that ownership structure affects post-listing performance. However, we find no statistical evidence of a positive effect of public listing on firms' profitability. We suggest alternative interpretations of the last finding. Copyright (c) The European Bank for Reconstruction and Development, 2004.

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Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 12 (2004)
Issue (Month): 3 (09)
Pages: 467-487
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Handle: RePEc:bla:etrans:v:12:y:2004:i:3:p:467-487

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  1. Estrin, Saul & Tian, Lihui, 2005. "Retained State Shareholding in Chinese PLCs: Does Government Ownership Reduce Corporate Value?," CEPR Discussion Papers 4919, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Ayyagari, Meghana & Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2008. "Formal versus informal finance : evidence from China," Policy Research Working Paper Series 4465, The World Bank. [Downloadable!]
  3. Takao Kato & Cheryl Long, 2006. "CEO Turnover, Firm Performance and Enterprise Reform in China: Evidence from New Micro Data," IZA Discussion Papers 1914, Institute for the Study of Labor (IZA). [Downloadable!]
  4. James Laurenceson & Bing Bing Jiang & Kam Ki Tang, . "Share reform and the performance of China’s listed companies," EAERG Discussion Paper Series 1005, School of Economics, University of Queensland, Australia. [Downloadable!]
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