State ownership and listed firm performance: A universally negative governance relationship?

Journal of Management and Governance

Volumn 15, Issue 2, 2011, Pages 227-248

  le, Trien Vinh ^a   Buck, Trevor ^a  

^a LOUGHBOROUGH UNIVERSITY   (United Kingdom)

Author keywords

Agency theory; China; Economic transition; Mediation; Performance; State ownership

Indexed keywords

EID: 79954628467     PISSN: 13853457     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10997-009-9098-5     Document Type: Article

References (82)

1. Allen, F., Qian, J., & Qian, M. (2005). Law, finance, and economic growth in China. Journal of Financial Economics, 77, 57-116.
2. Ang, J. S., Cole, R. A., & Lin, J. W. (2000). Agency costs and ownership structure. Journal of Finance, 55, 81-106.
3. Barberis, N., Boycko, M., Shleifer, A., & Tsukanova, N. (1996). How does privatization work? Evidence from the Russian Shops. Journal of Political Economy, 104, 764-790.
4. Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173-1182.
5. Bascle, G. (2008). Controlling for endogeneity with instrumental variables in strategic management research. Strategic organization, 6, 285-327.
6. Birdsall, N., & Nellis, J. (2005). Reality check: The distributional impact of privatization in developing countries. Washington DC: Center for Global Development.
7. Bontis, N., Booker, L., & Serenko, A. (2007). The mediating effect of organizational reputation on customer loyalty and service recommendation in the banking industry. Management Decision, 45, 1426-1445.
8. Boycko, M., Shleifer, A., & Vishny, R. W. (1996). A theory of privatization. Economic Journal, 106, 309-319.
9. Buck, T. W., Liu, X., & Skovoroda, R. (2008). Top executive pay and firm performance in China. Journal of International Business Studies, 39, 833-850.
10. Chang, S. J. (2003). Ownership structure, expropriation, and performance of group-affiliated companies in Korea. Academy of Management Journal, 46, 238-253.
11. Chen, J.-R. (2008). Attaining a greater understanding of how job attitudes of new MIS professionals impact their turnover intentions at the socialization stage. The Business Review, 11, 207-213.
12. Chen, G., Firth, M., & Rui, O. (2006). Have China's enterprise reforms led to improve efficiency and profitability? Emerging Markets Review, 7, 82-109.
13. Chen, X.-P., & Li, S. (2005). Cross-national differences in cooperative decision-making in mixed-motive business contexts: The mediating effect of vertical and horizontal individualism. Journal of international business studies, 36, 622-636.
14. Chen, S., Sun, Z., & Wang, Y. (2002). Evidence from China on whether harmonized accounting standards harmonize accounting practices. Accounting Horizons, 16, 183-197.
15. Chen, X., & Yur-Austin, J. (2007). Re-measuring agency costs: The effectiveness of blockholders. The Quarterly Review of Economics and Finance, 47, 588-601.
16. Chow, G. C. (1997). Challenges of China's economic system for economic theory. American Economic Review, 87, 321-327.
17. Clarke, T. (2007). International corporate governance: A comparative approach. Oxon, England: Routledge.
18. Deloitte. (2006). China's new accounting standards. www. deloitte. com accessed 7. 2. 09.
19. Dharwadkar, R., George, G., & Brandes, P. (2000). Privatization in emerging economies: An agency theory perspective. Academy of Management Review, 25, 650-669.
20. Djankov, S., & Murrell, P. (2002). Enterprise restructuring in transition: A quantitative survey. Journal of Economic Literature, 40, 739-792.
21. Fernald, J., & Rogers, J. H. (2002). Puzzles in the Chinese stock market. Review of Economics and Statistics, 84, 416-432.
22. Gibbs, P. A. (1993). Determinants of corporate restructuring: The relative importance of corporate governance, takeover threat, and free cash flow. Strategic Management Journal, 14, Special issue: Corporate restructuring, 51-68.
23. Gordon, R. H., & Li, W. (2003). Government as a discriminating monopolist in the financial market: The case of China. Journal of Public Economics, 87, 283-312.
24. Green, S., & Liu, S. G. (2005). Exit the dragon? Privatization and state control in China. Chatham House, Blackwell: London.
25. Groves, T., Hong, Y., McMillan, J., & Naughton, B. (1994). Autonomy and incentives in Chinese state enterprises. Quarterly Journal of Economics, 109, 183-209.
26. Hoskisson, R. E., Eden, L. L., Chung, M., & Wright, M. (2000). Strategy in emerging economies. Academy of Management Journal, 43, 249-267.
27. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review, 76, 323-329.
28. Jensen, M. C. (1993). Presidential address: The modern industrial revolution, exit and the failure of internal control systems. Journal of Finance, 48, 831-880.
29. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305-360.
30. Jia, J., Sun, Q., & Tong, W. (2005). Privatization through an overseas listing: Evidence from China"s H-share firms. Financial Management, 34, 3-30.
31. Jingu, T. (2007). Corporate governance for listed companies in China-recent moves to improve the quality of listed companies. Nomura Capital Market Review, 10, 36-52.
32. Kato, T., & Long, C. (2006). Executive turnover and firm performance in. China, 96, 363-367.
33. Lau, C.-M., Fan, D. K. K., Young, M. N., & Wu, S. (2007). Corporate Governance Effectiveness During Institutional Transition. International Business Review, 16, 425-448.
34. Lau, L. J., Qian, Y., & Roland, G. (2000). Reform without losers: An interpretation of China's dual-track approach to transition. Journal of Political Economy, 108, 120-143.
35. Lehn, K., & Poulsen, A. (1989). Free cash flow and stockholder gains in going private transactions. Journal of Finance, 44, 771-797.
36. Li, D. (1998). Changing incentives of the Chinese bureaucracy. American Economic Review, 88, 393-397.
37. Li, W. (1997). The impact of economic reform on the performance of Chinese state enterprises, 1980-1989. Journal of Political Economy, 105, 1080-1106.
38. Lin, T. W. (2004). Corporate governance in China: Recent developments, key problems and solutions. Journal of Accounting and Corporate Governance, 1, 1-23.
39. Lin, A. Y., & Swanson, P. E. (2008). The effect of China's reform policies on stock market information transmission. Quarterly Journal of Finance & Accounting, 47, 49-76.
40. Liu, G. S., & Sun, P. (2005). China's public firms: How much privatization? In S. Green & S. G. Liu (Eds.), Exit the dragon? Privatization and state control in China. London: Chatham House, Blackwell.
41. Lu, D. (2000). Industry policy and resource allocation: Implications on China's participation in globalization. Chinese Economic Review, 11, 342-360.
42. Lu, D., Thangavelu, S., & Hu, Q. (2005). Biased lending and non-performing loans in China's banking sector. Journal of Development Studies, 41, 1071-1091.
43. Mann, S. V., & Sicherman, N. W. (1991). The agency cost of free cash flow: Acquisition activity and equity issues. Journal of Business, 64, 213-227.
44. McKnight, P., & Weir, C. (2009). Agency costs, corporate governance mechanisms and ownership structure in large UK publicly quoted companies: A panel data analysis. Quarterly Review of Economics and Finance, forthcoming.
45. Megginson, W. L., & Netter, J. M. (2001). From state to market: A survey of empirical studies on privatization. Journal of Economic Literature, 39, 321-390.
46. Min, J. H., & Prather, L. J. (2001). Tobin's q, agency conflicts, and different wealth effects of international joint ventures. Global Finance Journal, 12, 267-283.
47. Nee, V., Opper, S., & Wong, S. (2007). Developmental state and corporate government in China. Management and Organization Review, 3, 19-53.
48. Neter, J., Kutner, M. H., Nachtsheim, C. J., & Wasserman, W. (1996). Applied Linear Regression Models (3rd ed.). Chicago: Irwin.
49. Nolan, P. (2001). China and the global business revolution. New York: Palgrave.
50. Norton, L. P. (2008). Who's minding the minders of Chinese accounting? Barron's, 88, 36-38.
51. Park, S. H., Li, S., & Tse, D. K. (2006). Market liberalization and firm performance during China's economic transition. Journal of International Business Studies, 37, 127-147.
52. Park, S. H., & Luo, Y. (2001). Guanxi and organizational dynamics: Organizational networking in Chinese firms. Strategic Management Journal, 22, 455-477.
53. Peng, M. P., & Luo, Y. (2000). Managerial ties and firm performance in a transition economy: The nature of a micro-macro link. Academy of Management Journal, 43, 486-501.
54. Peng, S., Tondkar, R. H., van der Laan Smith, J., & Harless, D. W. (2008). Does convergence of accounting standards lead to a convergence of accounting practices? A study from China. International Journal of Accounting, 43, 448-468.
55. Price, B. E. (2007). The threat of privatization: The impetus behind government performance. International Journal of Public Administration, 30, 1141-1155.
56. Qi, D., Wu, W., & Zhang, H. (2000). Shareholding structure and corporate performance of partially privatized firms: Evidence from listed Chinese companies. Pacific-Basin Finance Journal, 8, 587-610.
57. Rediker, K. J., & Seth, A. (1995). Boards of directors and substitution effects of alternative governance mechanisms. Strategic Management Journal, 16, 85-99.
58. Reuer, J. J., & Miller, K. D. (1997). Agency costs and the performance implications of international joint venture internalization. Strategic Management Journal, 18, 425-438.
59. Sami, H., & Zhou, H. (2008). Do auditing standards improve the accounting disclosure and information environment of public companies? Evidence from the emerging markets China. International Journal of Accounting, 43, 139-169.
60. Sheng, S., Parker, A. M., & Nakamoto, K. (2005). Understanding the mechanism and determinants of compromise effects. Psychology & Marketing, 22, 591-609.
61. Shirley, M., & Walsh, P. (2000). Public versus private ownership: The current state of the debate, Working Paper No. 2420, World Bank.
62. Shleifer, A. (1998). State versus private ownership. Journal of Economic Perspectives, 12, 133-150.
63. Shleifer, A., & Vishny, R. (1997). A survey of corporate governance. Journal of Finance, 52, 737-783.
64. Shleifer, A., & Vishny, R. W. (1998). The grabbing hand: Government pathologies and their cures. Boston: Harvard University.
65. Singh, M., & Davidson, W. N., I. I. I. (2003). Agency costs, ownership structure and corporate governance mechanisms. Journal of Banking, Finance, 27, 793-816.
66. Sun, Q., & Tong, W. (2003). China share issue privatization: The extent of its success. Journal of Financial Economics, 70, 183-222.
67. Sun, Q., Tong, W., & Tong, J. (2002). How does government ownership affect firm performance? Evidence from China's privatization experience. Journal of Business Finance and Accounting, 29, 1-27.
68. The Economist. (2007). Cultural revolution: Chinese accounting, 382(8511), p 63.
69. Tian, L., & Estrin, S. (2005). Retained state shareholding in Chinese PLCs: Does government ownership reduce corporate value?, working paper 750. Ann Arbor: William Davidson Institute.
70. Wan, J., & Yuce, A. (2007). Listing regulations in China and their effect on the performance of IPOs and SOEs. Research in International Business and Finance, 21, 366-378.
71. Wang, X., Xu, L. C., & Zhu, T. (2004). State-owned enterprises going public: The case of China. Economics of Transition, 12, 467-487.
72. Wei, Z., Xie, F., & Zhang, S. (2005). Ownership structure and firm value in China's privatized firms: 1991-2001. Journal of Financial and Quantitative Analysis, 40, 87-108.
73. White, S. (2000). Competition, capabilities, and the make, buy, or ally decisions of Chinese state-owned firms. Academy of Management Journal, 43, 324-341.
74. Wooldridge, J. (2003). Introductory econometrics. Ohio: South Western, Mason.
75. Wright, M., Filatotchev, I., Hoskisson, R., & Peng, M. W. (2005). Strategy research in emerging economies: Challenging the conventional wisdom. Journal of Management Studies, 42, 1-33.
76. Wright, P. C., & Nguyen, V. T. (2000). State-owned enterprises (SOEs) in Vietnam-Perceptions of strategic direction for a society in transition. International Journal of Public Sector Management, 13, 169-177.
77. Xiong, Y., Su, W., & Lin, T. W. (2008). Activity-based costing popularity in China. Cost Management, 22, 40-48.
78. Xu, X., & Wang, Y. (1999). Ownership structure and corporate governance in Chinese stock companies. China Economic Review, 10, 75-98.
79. Young, M. N., Peng, M. W., Ahlstrom, D., Bruton, G. D., & Jiang, Y. (2008). Corporate governance in emerging economies: A review of the principal-principal perspective. Journal of Management Studies, 45, 196-220.
80. Yu, B. Y., & Egri, C. P. (2005). Human resource management practices and affective organizational commitment: A comparison of Chinese employees in a state-owned enterprise and a joint venture. Asia Pacific Journal of Human Resources, 43, 332-360.
81. Zajac, E. J., & Westphal, J. D. (1994). The costs and benefits of managerial incentives and monitoring in large us corporations-when is more not better. Strategic Management Journal, 15, 121-142.
82. Zhang, W. (2006). China's SOE reform: A corporate governance perspective". Corporate Ownership and Control, 3, 132-150.