Firm performance and the ownership of the largest shareholder

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

2 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)126-138
Journal / PublicationCorporate Ownership and Control
Volume4
Issue number3
Publication statusPublished - 2007
Externally publishedYes

Abstract

We examine the relationship between cash-flow rights held by the largest shareholders and firm performance in Chinese capital market. Using a sample of all listed A-share firms between 2000 and 2003, we find that there are "region effects" with an "M" shape in the relationship between cash flow rights held by the largest shareholder and firm performance. The non-monotonic variations of firm performance associated with changes of the largest shareholdings suggest that there may be an optimal ownership structure existed in listed Chinese firms. We also find that firms under the control of largest state shareholders have poorer performance than that under the control of largest non-state shareholders.

Research Area(s)

  • Corporate governance, Firm performance, Ownership structure, The largest shareholder

Citation Format(s)

Firm performance and the ownership of the largest shareholder. / Chen, Xiaoyue; Kim, Jeong-Bon; Wang, Steven Shuye; Xu, Xiaodong.

In: Corporate Ownership and Control, Vol. 4, No. 3, 2007, p. 126-138.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review