Institutional environment, firm ownership, and IPO first-day returns: Evidence from China

Chen, Yibiao; Wang, Steven Shuye; Li, Wei; Sun, Qiang; Tong, Wei

doi:10.1016/j.jcorpfin.2015.03.002

Cited by 118 publications

(52 citation statements)

References 56 publications

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“…For the measurement of InsE, most of the existing studies use the score of marketization index, especially in the Chinese research setting (Chen et al, 2015;Lin et al, 2017;Zeng et al, 2019)…”

Section: Institutional Environmentmentioning

confidence: 99%

Can environmental investments benefit environmental performance? The moderating roles of institutional environment and foreign direct investment

Ramanathan

2020

Bus Strat Env

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The contribution of environmental investments (EIs) to environmental performance (EP) is a lively topic for environmental researchers across the world. In spite of huge amount of research, there is still lack of clarity on the moderating factors that affect the role played by EI. In this study, we distinguish EI into pollution control investments (PCIs) and pollution prevention investments (PPIs). We further investigate whether institutional environment and foreign direct investment (FDI) can play their moderating effects both on the relationship between EI and EP and on the relationships between different types of investments and EP or not. The results indicate that EI has a positive effect on EP. More specifically, PPI plays a stronger positive role in EP, but PCI does not have a significant effect on EP. In addition, both institutional environment and FDI can strengthen the positive impact of EI on EP. The increase of EI in regions with better institutional environment or high FDI can lead to greater improvement in EP. These moderating effects of institutional environment and FDI are also confirmed on the link between PPI and EP. In summary, our results reinforce the existing views that EI, and specifically PPI, can improve EP but further contribute to the understanding of the positive moderating roles played by the institutional environment and FDI on the link between EI and EP. K E Y W O R D S environmental investments, environmental performance, foreign direct investment, institutional environment, pollution control investments, pollution prevention investments 1 | INTRODUCTION How to address the environmental problems caused by the economic development is a common problem faced by the whole world. Over the past 40 years, China has made remarkable achievements in economic development. However, the environmental problems caused by the rapid economic development are still serious (Ai, Hu,

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Section: Institutional Environmentmentioning

confidence: 99%

Can environmental investments benefit environmental performance? The moderating roles of institutional environment and foreign direct investment

Ramanathan

2020

Bus Strat Env

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“…We also follow Chen et al (2014), and examine in Table 4, Panel B the performance differences for firms controlled by the central and local governments. We find that firms controlled by local government have better performance at 10% significance level and higher productivity at 5% level.…”

Section: Discussionmentioning

confidence: 99%

“…To provide additional evidence of the effect of local government quality, we also use the marketization variable (NERIIM), which provides a measure of the degree to which the provincial economy is subject to market mechanisms. Marketization has been used in a recent working paper analyzing its firm effect (Cheng, Wang, Li, & Tong, 2014). Since the NERIIM has changed its methodology significantly after 1999, we use the 1999 NERIIM [5]…”

Section: Quality Of Governmentmentioning

confidence: 99%

The Quality of Local Government and Firm Performance: The Case of China's Provinces

2015

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Extending La Porta, Lopez-de-Silanes, Shleifer, and Vishny (1999), we examine the effect of local government quality on firm performance, since regional and firm research provides a more fine-grained analysis especially in countries where local administration is an integral part of the bureaucratic apparatus. Using a dataset of 7,873 Chinese listed firm-years for 1994-2006, we find a positive relationship between the quality of provincial government and firm performance, controlling for location and firm-specific governance variables. Among various government quality variables, we find that having a special economic zone depicting low taxes and bureaucratic efficiency is the best predictor of firm performance, followed by the degree of marketization, efficient property registration, and environmental protection. Most intriguingly, political freedom has a significant impact on firm performance and productivity, even in a regime where democracy is not practiced. This has never been documented before at a microeconomic level and barely so at a macro level, vindicating Hayek's (1944) theory.

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“…Usually owned by the local governments [44] in the different provinces/municipalities and referred to as local SOEs (LSOEs), many comparisons have been made between SOEs and non-communist owned firms in OECD countries on topics as diverse as initial public offering (IPO) stock performance [45], due diligence and accounting challenges [46], executive compensation [47], and corporate social responsibility reporting [42].…”

Section: Chinese State-owned Enterprisesmentioning

confidence: 99%

“…100 very large and/or nationally important SOEs are managed/overseen centrally by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) at a central government level and these firms are referred to as the Central SOEs (CSOEs). SASAC and CSOEs are defined as well as discussed in a number of papers as these papers review topics, such as firm ownership structure [43], stock market listing [45], financial performance [48], audit quality [49], and social as well as environmental reporting [42].…”

Section: Chinese State-owned Enterprisesmentioning

confidence: 99%

The (R)evolution of China: Offshore Wind Diffusion

Poulsen

Hasager

2017

Energies

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This research presents an industry level gap analysis for Chinese offshore wind, which serves as a way to illuminate how China may fast track industry evolution. The research findings provide insight into how the Chinese government strongly and systematically decrees state-owned Chinese firms to expand into overseas markets to speed up learning efforts. Insights are offered regarding the nation-level strategic plans and institutional support policies mobilized by China in order to be able to conquer market shares internationally by building a strong home market and then facilitating an end-to-end and fully financed export solution. This is interesting in itself and in particular so because it now also includes complex billion-dollar megaprojects such as turnkey offshore wind farm assets with an expected lifespan of 30+ years. Research findings are provided on how European and Chinese firms may successfully forge long-term alliances also for future Chinese wind energy export projects. Examples of past efforts of collaboration not yielding desired results have been included as well. At policy level, recommendations are provided on how the evolution of the Chinese offshore wind power industry can be fast-tracked to mirror the revolutionary pace, volume, and velocity which the Chinese onshore wind power industry has mustered.

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Institutional environment, firm ownership, and IPO first-day returns: Evidence from China

Cited by 118 publications

References 56 publications

Can environmental investments benefit environmental performance? The moderating roles of institutional environment and foreign direct investment

Can environmental investments benefit environmental performance? The moderating roles of institutional environment and foreign direct investment

The Quality of Local Government and Firm Performance: The Case of China's Provinces

The (R)evolution of China: Offshore Wind Diffusion

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