Skip to main content

Reversal in the relative performance of state- and legal person-owned companies during the Chinese split share structure reform

Buy Article:

$53.17 plus tax (Refund Policy)

Abstract:

The split share structure reform was started in 2005 with the object of re-designating state-related, nontradable shares into tradable shares. The article compares the two major forms of state ownership in China (direct or indirect ownership) showing that, close to the reform period, companies directly held by the state experience a significant increase in market performance relative to indirectly held companies. Results suggest that investors’ perception about the worth of these two forms of state ownership may have suffered a reversal, thus bringing to light value-related consequences ensuing from protective schemes usual in China and elsewhere. The article also addresses a recurrent pitfall relating to the use in empirical models of fractions of the same total and shows that U-shaped patterns found in the relationship between ownership and performance are transient rather than stable.

Keywords: Chinese privatization; G18; G32; corporate ownership; legal person; ownership and performance

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036846.2014.881973

Affiliations: 1: Faculty of Business Administration, University of Macau, Taipa, Macau 2: ADETTI, University Institute of Lisbon, 8000, Faro, Portugal

Publication date: May 24, 2014

More about this publication?
routledg/raef/2014/00000046/00000015/art00004
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more