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

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  • Kang, Young-Sam
  • Kim, Byung-Yeon

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.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 23 (2012)
Issue (Month): 2 ()
Pages: 471-481

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Handle: RePEc:eee:chieco:v:23:y:2012:i:2:p:471-481

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Web page: http://www.elsevier.com/locate/chieco

Related research

Keywords: Privatization; Gradual approach; Ownership structure; Marketized state-owned enterprises; China;

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