Corporate ownership, efficiency and performance under state capitalism: Evidence from China

Li, L, McMurray, A, Sy, M and Xue, J 2018, 'Corporate ownership, efficiency and performance under state capitalism: Evidence from China', Journal of Policy Modeling, vol. 40, no. 4, pp. 747-766.


Document type: Journal Article
Collection: Journal Articles

Title Corporate ownership, efficiency and performance under state capitalism: Evidence from China
Author(s) Li, L
McMurray, A
Sy, M
Xue, J
Year 2018
Journal name Journal of Policy Modeling
Volume number 40
Issue number 4
Start page 747
End page 766
Total pages 20
Publisher Elsevier
Abstract This paper studied the relationship between business performance and the ownership structure of firms focusing on Chinese state owned enterprises (SOEs) using a firm level panel data set of China from 1999 to 2011. By classifying all firms into different types based on their ultimate controlling shareholders, we found that SOEs in general underperform in the marketplace than private enterprises. However, among the SOEs in our sample, the SOEs controlled by central government outperformed all types of firms because they offered the highest asset turnover ratio and lowest business administration ratio by receiving favourable government treatment. We conclude that firm ownership type and work efficiency are the main factors that influence the differences in firm performance. In particular, the performance of SOEs controlled by central government is greatly determined by the degree of government intervention, which is referred to as State Capitalism.
Subject Finance
Keyword(s) Ownership
Efficiency
Firm performance
State capitalism
China
DOI - identifier 10.1016/j.jpolmod.2018.03.002
Copyright notice © 2018 The Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.
ISSN 0161-8938
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 2 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 0 times in Scopus Article
Altmetric details:
Access Statistics: 21 Abstract Views  -  Detailed Statistics
Created: Tue, 26 Mar 2019, 09:36:00 EST by Catalyst Administrator
© 2014 RMIT Research Repository • Powered by Fez SoftwareContact us