Ownership Structure and Performance of China’s A-Share-Listed Benchmark Hotels

Abstract

This study explores how the ownership structure of China's A-share-listed hotel industry affects the operating performance which can help understand the uniqueness of the hotel industry in China. On the basis of the panel data analysis of six A-sharelisted hotels in recent years, the research reveals the following. (1) The proportion of state-owned, institutional investors, tradable ownership and the equity balance index have negative effects on return on assets (ROA). While the proportion of managerial ownership has a positive influence on ROA. (2) The proportion of state-owned, tradable ownership and the equity balance index have positive effect on performance. The proportions of managerial ownership and the top ten shareholders have negative effects on Tobin's Q. (3) The proportion of state-owned, institutional investor shares, tradable ownership and the equity balance index have negative effects on the sustainable growth rate. We found that the Chinese hotel industry moves towards the trend of global operations but still keep it characteristics in the local market structure.

Why the Operating Performance of Post-IPO Firms Decreases: Evidence from China

“…Previous research shows that post-IPO performance decreases (Gao et al 2021;Jin et al 2017;Pastusiak et al 2016), with some research attributing it to various factors such as ownership structure (Peng et al 2021), political connections (Bao et al 2016), and government involvement (Cumming and Johan 2016). Few studies attribute it to strategies for management of IPO capital.…”