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BRIC without B: Does ownership structure matters for firm performance in emerging economies?

Author

Listed:
  • Muhammad Yusuf Amin

    (Abdul Wali Khan University)

  • Zahoor Ul Haq

    (Abdul Wali Khan University)

Abstract

This article tests the relationship between ownership and firm performance in emerging countries; Russia, India, and China. Annual financial and accounting data of 213 state-owned and 3,624 non-state-owned enterprises- for the period 2011–2015 are compiled from Orbis. The empirical results show that on average, the firm performance is negatively associated with state-owned enterprises in Russia, India and China. This is also confirmed with country-specific analysis except for Russia. These results suggest that among emerging countries, India and China’s state-owned enterprises are less profitable in comparison to non-state-owned enterprises. Lower profitability of state-owned enterprises is justified by the argument that the main goals of enterprises under state control are not in line.

Suggested Citation

  • Muhammad Yusuf Amin & Zahoor Ul Haq, 2022. "BRIC without B: Does ownership structure matters for firm performance in emerging economies?," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(1), pages 217-226, February.
    • Handle: RePEc:spr:qualqt:v:56:y:2022:i:1:d:10.1007_s11135-021-01124-8
    DOI: 10.1007/s11135-021-01124-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Emerging economies; Ownership structure; Firm performance; BRIC;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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