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State‐owned enterprises going public The case of China

Author

Listed:
  • Xiaozu Wang
  • Lixin Colin Xu
  • Tian Zhu

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.

Suggested Citation

  • Xiaozu Wang & Lixin Colin Xu & Tian Zhu, 2004. "State‐owned enterprises going public The case of China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(3), pages 467-487, September.
    • Handle: RePEc:bla:etrans:v:12:y:2004:i:3:p:467-487
    DOI: 10.1111/j.0967-0750.2004.00189.x
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