Partial privatisation and firm performance: evidence from China's state-owned enterprises. (1st January 2013)

• Record Type: Journal Article
• Authors: Li, Liaoliao; Tang, Zongming; Tang, Xiaofei; Zhang, Lizhi; Zhang, Xiangjian
• Is Part Of: International journal of internet and enterprise management. Volume 8:Number 2(2013)
• Page Start: 103
• Page End: 128
• Publication Date: 2013-01-01
• Subjects: partial privatisation -- firm performance -- state-owned enterprises -- SOEs -- newly privatised firms -- NPFs -- performance changes -- China; Internet -- Periodicals; Business information services -- Periodicals; Information storage and retrieval systems -- Management -- Periodicals; Business enterprises -- Computer networks -- Periodicals; 004.678
• Languages: English
• ISSNs: 1476-1300

Abstract

This paper investigates the performance changes of 390 state-owned enterprises (SOEs) in China during 2000–2008 with the existence of share issue privatisation (SIP), and analyses the macro and micro determinants of these changes. We find that SIP significantly improves SOEs' output and efficiency, and the performance changes vary along with different macro and micro factors. Economic growth, industry regulations, regional marketisation, institutional investors, and equity refinancing are positively related to performance changes. However, capital market development, control of large shareholders, contest of shareholders, and capital occupation exhibit significant negative impacts on firms' performance changes.