The more the better? Foreign ownership and corporate performance in China

نویسندگان

  • David Greenaway
  • Alessandra Guariglia
  • Zhihong Yu
چکیده

Using a panel of 21,582 Chinese firms over the period 2000-2005, we examine the relationship between the degree of foreign ownership and corporate performance in recipient firms. We find that foreign ownership is positively associated with firms’ return on assets, return on sales, labor productivity, and total factor productivity. Yet, the relationship exhibits an inverted U-shaped pattern: corporate performance increases as foreign participation rises up to about 47%-64%, and declines thereafter. This suggests that in China, joint-ventures between domestic and foreign enterprises are the top performers.

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تاریخ انتشار 2008