Authors: Liaoliao Li; Zongming Tang; Xiaofei Tang; Lizhi Zhang; Xiangjian Zhang
Addresses: Department of Business Administration, Kutztown University, Kutztown, PA 19530, USA ' Department of Finance, Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, 200052, China ' School of Business Administration, Southwestern University of Finance and Economics, Chengdu, 610074, China ' Northeastern University, Boston, MA 02115, USA ' Institute of Finance and Economics, Shanghai University of Finance and Economics, Shanghai, 200433, China
Abstract: This paper investigates the performance changes of 390 state-owned enterprises (SOEs) in China during 2000-2008 with the existence of share issue privatisation (SIP), and analyses the macro and micro determinants of these changes. We find that SIP significantly improves SOEs' output and efficiency, and the performance changes vary along with different macro and micro factors. Economic growth, industry regulations, regional marketisation, institutional investors, and equity refinancing are positively related to performance changes. However, capital market development, control of large shareholders, contest of shareholders, and capital occupation exhibit significant negative impacts on firms#39; performance changes.
Keywords: partial privatisation; firm performance; state-owned enterprises; SOEs; newly privatised firms; NPFs; performance changes; China.
International Journal of Internet and Enterprise Management, 2013 Vol.8 No.2, pp.103 - 128
Received: 10 Mar 2012
Accepted: 06 Oct 2012
Published online: 22 Aug 2013 *