IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v69y2024ipbs1544612324012285.html
   My bibliography  Save this article

Network-based state ownership and corporate resilience: Evidence from China

Author

Listed:
  • Fu, Weigang
  • Liu, Fangrui
  • Liu, Yan

Abstract

Better financial support from state shareholders may enhance corporate resilience when facing large negative shocks. We empirically test this hypothesis based on data of listed firms from Chinese , an institutional environment featuring wide state ownership, and exploit a negative macro shock for identification. We employ a new measure of state ownership, which is constructed for each firm by identifying its ultimate shareholders through its entire ownership network. The findings robustly support that state ownership contributes to firm resilience, and one channel is the better financial flexibility provided by higher state ownership.

Suggested Citation

  • Fu, Weigang & Liu, Fangrui & Liu, Yan, 2024. "Network-based state ownership and corporate resilience: Evidence from China," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012285
    DOI: 10.1016/j.frl.2024.106199
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324012285
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106199?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Corporate resilience; State ownership; Ownership network; Ultimate shareholder;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.