Corporate Governance and Corporate Performance: Some Evidence from Newly Listed Firms on Chinese Stock Markets
AbstractThis paper is concerned with some corporate governance issues related to newly listed firms in China based on a sample of 329 firms commencing listing on Shanghai Stock Exchange (SHSE) and Shenzhen Stock exchange (SZSE) during the period from 1998 to 2000. We first investigate the impact of ownership change due to stock market listing on corporate performance. We consider four aspects of corporate performance: profitability, sales, leverage and employee productivity. Our research results indicate that, on average, profitability, sales and employee productivity have improved from pre-listing to post-listing. We further investigate the impacts of state majority control, foreign ownership and regulation effects on corporate performance. Overall, this paper provides some new evidence on the listing effect, ownership structure and regulation effect on Chinese firms which will be valuable to the future reform of state owned enterprises in China.
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Bibliographic InfoPaper provided by School of Economics and Finance, Queensland University of Technology in its series School of Economics and Finance Discussion Papers and Working Papers Series with number 204.
Date of creation: 15 Jun 2005
Date of revision:
State owned enterprise; corporate governance; and corporate performance;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-02-17 (All new papers)
- NEP-CNA-2007-02-17 (China)
- NEP-EFF-2007-02-17 (Efficiency & Productivity)
- NEP-FMK-2007-02-17 (Financial Markets)
- NEP-TRA-2007-02-17 (Transition Economics)
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