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Ownership Structure and Firm Performance: An Empirical Analysis of Chinese Companies

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  • Hui Zhang
  • Khine Kyaw

Abstract

This study examines the relationship between ownership structure and firm performance in Chinese companies. We hand collected ownership data on 1178 non-financial companies with a total of 5815 firm-years from annual reports. Through fixed-effect panel model, this study has the following findings. First, there is a positive relationship between firm performance and institutional ownership in Chinese companies. Second, the proportion of tradable shares negatively affects firm performance. Third, ownership concentration and state ownership appear to not affect firm performance.

Suggested Citation

  • Hui Zhang & Khine Kyaw, 2017. "Ownership Structure and Firm Performance: An Empirical Analysis of Chinese Companies," Applied Economics and Finance, Redfame publishing, vol. 4(2), pages 57-64, March.
    • Handle: RePEc:rfa:aefjnl:v:4:y:2017:i:2:p:57-64
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    References listed on IDEAS

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    5. Li, Hongbin & Meng, Lingsheng & Wang, Qian & Zhou, Li-An, 2008. "Political connections, financing and firm performance: Evidence from Chinese private firms," Journal of Development Economics, Elsevier, vol. 87(2), pages 283-299, October.
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    7. Dahya, Jay & Dimitrov, Orlin & McConnell, John J., 2008. "Dominant shareholders, corporate boards, and corporate value: A cross-country analysis," Journal of Financial Economics, Elsevier, vol. 87(1), pages 73-100, January.
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    Cited by:

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    More about this item

    Keywords

    state ownership; institutional ownership; tradable shares; firm performance; China;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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