Location of Repository

Retained state shareholding in Chinese PLCs: Does government ownership reduce corporate value?

By Saul Estrin and Lihui Tian

Abstract

The role of government shareholding in corporate performance is central to an understanding of China's newly privatized large firms. In this paper, we analyze shareholders as agents that can both harm and benefit companies. We examine the ownership structure of 826 listed corporations and find that government shareholding is surprisingly large. Its effect on corporate value is found to be negative, but non-monotonic. Up to a certain threshold, corporate value decreases as government shareholding stakes increase, but beyond this corporate value begins to increase. We interpret this in terms of ownership concentration and the advantages of government partiality

Topics: H Social Sciences (General)
Publisher: London School of Economics and Political Science
Year: 2005
OAI identifier: oai:eprints.lse.ac.uk:20790
Provided by: LSE Research Online
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://eprints.lse.ac.uk/20790... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.