State Shareholding and the Value of China's Firms

48 Pages Posted: 5 Jul 2001

See all articles by Lihui Tian

Lihui Tian

Nankai University; University of London; Peking University - Department of Finance

Date Written: March 12, 2001

Abstract

Examining the ultimate ownership and control of 826 corporations listed on China's stock market, this paper argues that the government shareholder in control is the main feature of these Chinese firms. With the panel dataset of five years, it was found that firms under the control of the government shareholder are valued lower than the comparable firms under the control of a non-government shareholder, but the continuous relationship between state shareholding and corporate value is non-monotonic. Corporate value is lower with a larger stake of government ownership when the government is a small shareholder, but it increases with increased state shareholding when the government is a large shareholder. This paper interprets it with the grabbing and helping hands of the government shareholder.

Key words: ownership structure, government shareholding, corporate governance.

JEL Classification: G32, G34, G15, L33

Suggested Citation

Tian, George Lihui, State Shareholding and the Value of China's Firms (March 12, 2001). Available at SSRN: https://ssrn.com/abstract=275910 or http://dx.doi.org/10.2139/ssrn.275910

George Lihui Tian (Contact Author)

Nankai University ( email )

Tianjin, 300071
China

University of London ( email )

Exhibition Road
London, WC1E 7HU
United Kingdom

Peking University - Department of Finance ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China
+86 10 6275 7900 (Phone)
+86 10 6275 14763 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
868
Abstract Views
3,155
rank
34,303
PlumX Metrics