Ownership and ownership concentration: which is important in determining the performance of China's listed firms?

This article investigates the impact of ownership and ownership concentration on the performance of China’s listed firms. By recognizing the differences between ownership and ownership concentration and between total ownership concentration and tradable ownership concentration, we find that ownershi...

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Bibliographic Details
Published inAccounting and finance (Parkville) Vol. 50; no. 4; pp. 871 - 897
Main Authors Ma, Shiguang, Naughton, Tony, Tian, Gary
Format Journal Article
LanguageEnglish
Published Oxford, UK Blackwell Publishing Ltd 01.12.2010
Accounting and Finance Association of Australia and New Zealand
SeriesAccounting and Finance
Subjects
Business ownership
Concentration
Financial performance
G32
G34
Impact analysis
Legal person
Organizational structure
Ownership
Public companies
State
Studies
Tradable
China
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Summary:This article investigates the impact of ownership and ownership concentration on the performance of China’s listed firms. By recognizing the differences between ownership and ownership concentration and between total ownership concentration and tradable ownership concentration, we find that ownership concentration is more powerful than any category of ownership in determining firm performance; tradable ownership concentration has a more significant and positive influence on firm performance than total ownership concentration; the highest level of firm performance is approached when a firm is characterized by both total ownership concentration and tradable ownership concentration. Thus, we propose a conclusion that ownership concentration enhances firm performance regardless of who the concentrated owners are.
Bibliography:ark:/67375/WNG-TLP077L1-K
ArticleID:ACFI353
istex:44289728DDC4F8D037F69FA1D417506202ECFBD8
This research is supported by the New Research Grant from the Faculty of Commerce, University of Wollongong. We gratefully acknowledge the critical comments and helpful suggestions provided by two anonymous referees. We also thank the editor for his valuable inputs and advice.
ISSN:0810-5391
1467-629X
DOI:10.1111/j.1467-629X.2010.00353.x