Abstract
We evaluate the performance changes of 634 state-owned enterprises (SOEs) listed on China's two exchanges upon share issuing privatisation (SIP) in the period 1994-1998. We find that SIP is effective in improving SOEs' earnings ability, real sales, and workers' productivity but is not successful in improving profit returns and leverage after privatisation. We also find state ownership having negative impacts on firm performance and legal-person ownership having positive impacts on firm performance after SIP, which suggests that legal persons behave differently from the state government. Surprisingly, foreign ownership does not show uniformly strong, positive impacts on firm performance.
| Original language | English |
|---|---|
| Pages (from-to) | 183-222 |
| Number of pages | 40 |
| Journal | Journal of Financial Economics |
| Volume | 70 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1 Nov 2003 |
Keywords
- China
- Partial privatization
- Performance change
- Restructuring
- State-owned enterprise
ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics
- Strategy and Management