Why did some firms perform better in the global financial crisis?. Issue 1 (1st January 2017)

• Record Type: Journal Article
• Authors: Lee, Chien-Chiang; Chen, Mei-Ping; Ning, Shao-Lin
• Is Part Of: Ekonomska istraživanja. Volume 30:Issue 1(2017)
• Page Start: 1339
• Page End: 1366
• Publication Date: 2017-01-01
• Subjects: Global financial crisis -- firm performance -- contingency theory -- panel data -- China; G01 -- G23 -- G30 -- M40; Economics -- Research -- Periodicals; Economics -- Research; Electronic journals; 330.072
• DOI: 10.1080/1331677X.2017.1355258
• Languages: English
• ISSNs: 1331-677X

Abstract

Abstract: We explore what firm and macroeconomic factors assisted Chinese firms to resist the global financial crisis. We find that firms with higher top ten shareholder ratios or firms that are older exhibited saliently higher performance during the crisis, but performed poorly during the non-crisis period. Firm size has a notably negative impact on firm performance. Firms audited by the Big Four accounting firms have a significantly negative correlation with performance. During the crisis, stock markets became less efficient in incorporating firm-specific information into stock prices, signifying that the determinants of firm performance vary across non-crisis and crisis periods.