Institutions and organizational structure: The case of state-owned corporate pyramids

Journal of Law, Economics, and Organization

Volumn 29, Issue 6, 2013, Pages 1217-1252

  Fan, Joseph P H ^a   Wong, T J ^a   Zhang, Tianyu ^a  

^a The Chinese University of Hong Kong   (Hong Kong)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84890607401     PISSN: 87566222     EISSN: 14657341     Source Type: Journal    
DOI: 10.1093/jleo/ews028     Document Type: Article

References (62)

1. Acemoglu, Daron, Simon Johnson, and James Robinson. 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," 91 The American Economic Review 1369-401.
2. Aghion, Philippe, and Jean Tirole. 1997. "Formal and Real Authority in Organizations," 105 The Journal of Political Economy 1-29.
3. Almeida, Heitor V., and Daniel Wolfenzon. 2006. "A Theory of Pyramidal Ownership and Family Business Group," 61 The Journal of Finance 2637-80.
4. Almeida, Heitor V., Sang Y. Park, Marti G. Subrahmanyam, and Daniel Wolfenzon. 2011. "The Structure and Formation of Business Groups: Evidence from Korean Chaebols," 99 Journal of Financial Economics 447-75.
5. Baker, George P. 1992. "Beatrice: A Study in the Creation and Destruction of Value," 47 The Journal of Finance 1081-119.
6. Baker, George, Robert Gibbons, and Kevin J. Murphy. 1999. "Informal Authority in Organizations," 15 The Journal of Law, Economics, & Organization 56-73.
7. Bebchuk, Lucian. 1999. "A Rent-Seeking Theory of Corporate Ownership and Control," NBER Working Paper Number 7203.
8. Bebchuk, Lucian, Reinier Kraakman, and George Triantis. 2000. "Stock Pyramids, Cross-Ownership, and Dual Class Equity: The Creation and Agency Costs of Separating Control from Cash Flow Rights," Randall Morck, ed., Concentrated Corporate Ownership. National Bureau of Economic Research Conference Volume. Chicago, IL: University of Chicago Press.
9. Beck, T., and R. Levine. 2002. "Industry Growth and Capital Allocation: Does Having a Market- or Bank-based System Matter?," 64 Journal of Financial Economics 147-80.
10. Bertrand, Marianne, Paras Mehta, and Sendhil Mullainathan. 2002. "Ferreting out Tunneling: An Application to Indian Business Groups," 117 The Quarterly Journal of Economics 121-48.
11. Brandt, Loren, and Hong B. Li. 2003. "Bank Discrimination in Transition Economies: Ideology, Information, or Incentives?," 31 Journal of Comparative Economics 387-413.
12. Brandt, Loren, and Xiao Z. Zhu. 2000. "Redistribution in a Decentralized Economy: Growth and Inflation in China," 108 The Journal of Political Economy 422-39.
13. Burkart, Mike, Denis Gromb, and Fausto Panunzi. 1997. "Large Shareholders, Monitoring, and the Value of the Firm," 112 The Quarterly Journal of Economics 693-728.
14. Chernykh, Lucy. 2008. "Ultimate Ownership and Control in Russia," 88 Journal of Financial Economics 169-92.
15. Claessens, Stijn, Simeon Djankov, Joseph P.H. Fan, and Larry H.P. Lang. 2002. "Disentangling the Incentive and Entrenchment Effects of Large Shareholdings," 57 The Journal of Finance 2741-71.
16. Claessens, Stijn, Simeon Djankov, and Larry H.P. Lang. 2000. "The Separation of Ownership and Control in East Asian Corporations," 58 Journal of Financial Economics 81-112.
17. Cremer, Jacques. 1995. "Arm's Length Relationships," 110 The Quarterly Journal of Economics 275-95.
18. de Jong, Douglas V., Abe De Jong, Gerard Mertens, and Ulrich Hege. 2010. "Leverage in Pyramids: When Debt Leads to Higher Dividends," Working Paper, HEC Paris.
19. Demruger, Sylvie, Jeffrey D. Sachs, Wing Thye Woo, Shuming Bao, Gene Chang, and Andrew Mellinger. 2002. "Geography, Economic Policy and Regional Development in China," 1 Asian Economics Papers 146-97.
20. Fairbank, John K., and Merle Goldman. 1992. China: A New History. London: The Belknap Press of Harvard University Press.
21. Fan, Gang, and Xiao L. Wang. 2001. NERI Index of Marketization of China's Provinces. Beijing: Economics Science Press (In Chinese).
22. Fan, Joseph P.H., T.J. Wong, and Tianyu Zhang. 2007. "Politically Connected CEOs, Corporate Governance and Post-IPO Performance of China's Partially Privatized Firms," 84 Journal of Financial Economics 330-57.
23. Garnaut, Ross, Ligang Song, Stoyan Tenev, and Yang Yao. 2005. China's Ownership Transformation: Process, Outcomes, Prospects. Washington, DC: International Finance Corporation and International Bank for Reconstruction and Development/World Bank.
24. Grove, Theodore, Yongmiao Hong, John McMillan, and Barry Naughton. 1994. "Autonomy and Incentives in Chinese State Enterprises," 101 The Quarterly Journal of Economics 183-209.
25. Javorcik, Beata S. 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," 94 American Economic Review 605-27.
26. Jensen, Michael C., and William H. Meckling. 1992. "Specific and General Knowledge, and Organizational Structure," in Hans Wijkander Lars Werin, ed., Contract Economics. Oxford: The Blackwell Press.
27. Jones, Geoffrey. 2000. Merchants to Multinationals. Oxford: Oxford University Press.
28. Johnson, Simon, John McMillan, and Christopher Woodruff. 2002. "Property Rights and Finance," 92 American Economic Review 1335-56.
29. Keister, Lisa. A. 2000. Chinese Business Groups: The Structure and Impact of Inter-firm Relations during Economic Development. New York, NY: Oxford University Press.
30. Khanna, Tarun, and Catherine Thomas. 2009. "Synchronicity and Firm Interlocks in an Emerging Market," 92 Journal of Financial Economics 182-204.
31. Khanna, Tarun, and Jan W. Rivkin. 2001. "Estimating the Performance Effects of Business Groups in Emerging Markets," 22 Strategic Management Journal 45-74.
32. Khanna, Tarun, and Yafeh Yishay. 2007. "Business Groups in Emerging Markets, Paragons or Parasites?," 45 Journal of Economic Literature 331-72.
33. La Porta, Rafael, Florencio Lopez-de-Silanes, and Andrei Shleifer. 1999. "Corporate Ownership around the World," 54 The Journal of Finance 471-518.
34. La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert Vishny. 2002. "Investor Protection and Corporate Valuation," 57 Journal of Finance 1147-70.
35. Lai, Loi Lei. 2001. Power System Restructuring and Deregulation. New York, NY: Wiley.
36. Lemmon, Michael L., and Karl V. Lins. 2003. "Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis," 58 Journal of Finance 1445-68.
37. Lin, J. Y., and Z. Li. 2008. "Policy Burden, Privatization and Soft Budget Constraint," 36 Journal of Comparative Economics 90-102.
38. Maskin, Eric, Ying Y. Qian, and Cheng G. Xu. 2000. "Incentives, Information, and Organizational Form," 67 The Review of Economics Studies 359-78.
39. Masulis, Ronald W., Peter K. Pham, and Jason Zein. 2011. "Family Business Groups around the World: Costs and Benefits of Pyramids," Working Paper, University of New South Wales.
40. Morck, Randall. 2005. "How to Eliminate Pyramidal Business Groups: The Double Taxation of Inter-corporate Dividends and Other Incisive Use of Tax Policy," in P. James, ed., National Bureau of Economic Research Tax Policy Annual. Chicago, IL: University of Chicago Press.
41. Morck, Randall, and Bernard Yeung. 2005. "Dividend Taxation and Corporate Governance," 19 Journal of Economic Perspectives 163-80.
42. Morck, Randall, David A. Stangeland, and Bernard Yeung. 2000. "Inherited Wealth, Corporate Control, and Economic Growth: The Canadian Disease," Randall Morck, ed., Concentrated Corporate Ownership. National Bureau of Economic Research Conference Volume. Chicago, IL: University of Chicago Press.
43. Morck, Randall, Daniel Wolfenzon, and Bernard Yeung. 2004. "Corporate Governance, Economic Entrenchment and Growth," 43 Journal of Economic Literature 657-722.
44. Organization for Economic Co-operation and Development. 2005. Corporate Governance of State-owned Enterprises: A Survey of OECD Countries. The OECD Publishing.
45. Prat, Andrea. 2005. "The Wrong Kind of Transparency," 95 The American Economic Review 862-77.
46. Project Team. 2002. Exploration and Innovation of Modern Corporate System in Shanghai. Shanghai: Shanghai Education Press (in Chinese).
47. Qian, Ying Y. 1995. "Reforming Corporate Governance and Finance in China," in M. Aoki, and H. Kim, eds., Corporate Governance in Transition Economies: Insider Control and the Role of Banks. Washington, DC: World Bank.
48. "Enterprise Reform in China: Agency Problems and Political Control," 4 Economics of Transition 427-47. 1996.
49. Qian, Ying Y., and Jing L. Wu. 2003. "China's Transition to a Market Economy: How Far Across the River," in C. Nicholas, Dennis Tao Yang Hope, and Mu Yang Li, eds., How Far Across the River: Chinese Policy Reform at the Millennium. Stanford, CA: Stanford University Press.
50. Rajan, Raghuram G., and Julie Wulf. 2006. "The Flattening Firm: Evidence on the Changing Nature of Firm Hierarchies from Panel Data," 88 The Review of Economics and Statistics 759-73.
51. Shirley, Mary, and Patrick Walsh. 2001. "Public versus Private Ownership: The Current State of the Debate," Working Paper 2420, World Bank.
52. Shleifer, Andrei, and Robert W. Vishny. 1994. "Politicians and Firms," 109 The Quarterly Journal of Economics 995-1025.
53. -. 1998. The Grabbing Hand: Government Pathologies and Their Cures. Cambridge, MA: Harvard University Press.
54. Stein, Jeremy C. 2002. "Information Production and Capital Allocation: Decentralized versus Hierarchical Firms," 57 The Journal of Finance 1891-921.
55. Tenev, Stoyan, Chunlin Zhang, and Loup Brefort. 2002. Corporate Governance and Enterprise Reform in China. Washington, DC: World Bank and International Finance Corporation.
56. Voska, Eva. 1993. Restructuring of Large State Owned Enterprises in Hungary 1988-1993. Working Paper, United Nations Economic Commission for Europe.
57. Warkentin, Denise. 1998. Electric Power Industry in Nontechnical Language. Tulsa, Oklahoma: Penn Well Publishers.
58. Williamson, Oliver E. 1985. The Economic Institutions of Capitalism. New York, NY: The Free Press.
59. Wolfenzon, Daniel. 1999. "A Theory of Pyramidal Ownership," Working Paper. New York University.
60. Wu, Jing L. 2005. Understanding and Interpreting Chinese Economic Reform. Mason, OH: South-Western.
61. Wurgler, Jeffrey. 2000. "Financial Markets and the Allocation of Capital," 58 Journal of Financial Economics 187-214.
62. Zhang, X.H., and W. Z. Cai. 1996. Top 100 Enterprises in Reform Era. Shanghai: Lixin Accounting Press (in Chinese).