The more the better? Foreign ownership and corporate performance in China
نویسندگان
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.
منابع مشابه
China and the World Economy Research Paper 2009 / 05 The More the Better ? Foreign Ownership and Corporate Performance in China
We examine the relationship between the degree of foreign ownership and performance of recipient firms, using of panel of 21,582 Chinese firms over the period 2000-2005. We find that joint-ventures perform better than wholly foreign owned and purely domestic firms. Although productivity and profitability initially rise with foreign ownership, they start declining once foreign ownership reaches ...
متن کاملThe Mediation Effect of Financial Leverage on the Relationship between Ownership Concentration and Financial Corporate Performance
The purpose of this paper is examining the impact of financial leverage as a mediation variable on the relationship between ownership concentration and financial corporate performance. To test the hypotheses, multiple regression analysis is used. The statistical population of this research is all listed companies in Tehran Stock Exchange. However, data were available only for 60 companies durin...
متن کاملDeterminants of Non-Performing Loans in China and the Ownership Effect
This prospectus analyzes the potential determinants of Chinese non-performing loan (NPL) ratio in banking sector and its implications using panel data from different banks in China. By incorporating both bank specific factors and macro variables, it shows domestic credit growth rate, bank profitability measures and bank ownership play important roles in determining NPL ratio. Analysis of propor...
متن کاملUsing data from a recent national survey of the ownership reform of state-owned enterprises in China, we study the effects of politician control and agency problems
Using data from a recent national survey of the ownership reform of state-owned enterprises in China, we study the effects of politician control and agency problems on the performance of the reformed firms. Taking into account of the endogenous nature of the reform, we find that firm performance is positively affected by the lessening of politician control through increasing the firm’s flexibil...
متن کاملDisproportionate ownership structure and IPO long-run performance of non-SOEs in China
This paper examines the relationship between ownership structures and IPO long-run performance of nonSOEs in China. Although non-SOEs underperform the market in general after IPO but the poor performance is mainly caused by the IPOs with ownership control wedge. Non-SOEs with one share one vote structure outperform those with control-ownership wedge by 30% for three years post-IPO performance i...
متن کامل