Do Government Controllers Use the Corporate Control Market to Help Improve the Performance of Publicly Listed Chinese SOEs?
We examine whether the corporate control market is an important governance mechanism that the controlling shareholders of publicly listed Chinese SOEs employ to improve the performance of less efficiently run Chinese SOEs. Using an econometric methodology advocated by Maddala (1983), we show that expected future performance improvement is an important consideration in publicly listed Chinese SOEs' control transfer decisions. This result holds for both state-to-private and state-to-state control transfers and the effect is stronger for publicly listed Chinese SOEs domiciled in provinces with stronger institutional environments. There is also preliminary evidence that the firms other than the control transfer target controlled by the acquiring ultimate owners are more efficiently run than the firms controlled by the selling ultimate owners. Overall, our results suggest that the Chinese Government actively uses the corporate control market to help improve the performance of publicly listed Chinese SOEs
Year of publication: |
2015
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Authors: | Ke, Bin |
Other Persons: | Yu, Wei (contributor) ; Zheng, Ying (contributor) |
Publisher: |
[2015]: [S.l.] : SSRN |
Subject: | Corporate Governance | Corporate governance | China | Öffentliches Unternehmen | Public enterprise | Aktiengesellschaft | Listed company |
Saved in:
freely available
Extent: | 1 Online-Ressource (47 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 20, 2015 erstellt |
Other identifiers: | 10.2139/ssrn.2625873 [DOI] |
Classification: | G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; G32 - Financing Policy; Capital and Ownership Structure |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013020016
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