State Dominant and Non-State Dominant Ownership Concentration and Firm Performance: Evidence from China

Heß, Kurt; Gunasekarage, Abey; Hovey, Martin

doi:10.2139/ssrn.1112383

Cited by 22 publications

(27 citation statements)

References 15 publications

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“…To determine what is associated with a firm's R&D spending in the biotechnology and pharmaceutical sectors, we designed the following regression model, whereby we regressed intangible assets on firm ownership structure (including ownership concentration, state ownership and inside ownership), firm characteristics (including size, leverage, profitability, inventory intensity, fixed asset intensity), and government tax and subsidies. This is consistent with the methodology of previous studies [15][16][17][18][19][20][21][22]. & it R D : intangible assets (including patents, trademarks and licenses) measured as intangible assets net of the right to use land, divided by total assets, for firm i in year t. it OWN : Ownership concentration, measured as the percentage of shares held by the 5 largest shareholders for firm i in year t.…”

Section: Data Collection and Preliminary Resultssupporting

confidence: 86%

Innovation and R&D Activities in China?s Biotechnology and Pharmaceutical Sectors

Zeng¹

2013

J Bus Fin Aff

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This paper examines innovation and R&D expenditures in China's biotechnology and pharmaceutical sectors. We found that R&D spending for these industries was much lower than spending in operating activities, which suggests a suboptimal allocation of resources. We also found that the proportion of intangible assets to total assets (including patents, trademarks and licenses) were also much lower than those in industrialized countries such as Canada and the U.S. We also examined other factors that were associated with R&D spending in these sectors. Using the China Stock Market Financial Statement Database and the SINA financial database, it was found that Chinese biotechnology and pharmaceutical firms' expenditures in R&D activities are positively associated with ownership structure, but negatively associated with firm size, and with investments in other assets including inventory and fixed assets.

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Section: Data Collection and Preliminary Resultssupporting

confidence: 86%

Innovation and R&D Activities in China?s Biotechnology and Pharmaceutical Sectors

Zeng¹

2013

J Bus Fin Aff

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“…Firm size was operationalized based on number of employees (Marchi, ; Walker and Wan, ; Berrone et al ., ; Huang and Li, ), condensed into three levels. Firm age was operationalized based on years since incorporation (Westman and Thorgren, ; Huang and Boateng, ; Ke, ; Tian and Estrin, ; Hess et al ., ), condensed into six levels. Ownership structure was categorical, with fixed effects as a control.…”

Section: Methodsmentioning

confidence: 99%

Green Innovation, Managerial Concern and Firm Performance: An Empirical Study

et al. 2017

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Extant literature, while often suggesting a positive link between green innovation and firm performance, is inconclusive. Moreover, the possibly moderating role of management has not been sufficiently considered. Using a unique dataset sampling 188 manufacturing firms in China, we examine how managerial concern (for green issues) moderates the relationship between green innovation and firm performance. We find that green process innovation and green product innovation both significantly (positively) predict firm performance, when not considering managerial concern for the environment. Once managerial concern is included, we observe that it compounds the positive effect of green process innovation on firm performance -but not product innovation, which no longer explains significant unique variance in firm performance. The findings hold various implications for future research and business policy.

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“…There is also evidence that Dynamic study concentrated shareholders can increase their own benefits at the expense of minority shareholders (Porta et al, 2002;Claessens and Yurtoglu, 2013;Liu et al, 2011;Du et al, 2014). A large body of empirical study has utilized ownership concentration (in the form of either institutional ownership or other block-holder ownership) as a proxy to explore its impact on firm performance (Yu, 2013;Hess et al, 2010;Lin et al, 2009;Gul et al, 2010;Ma et al, 2010;Kang and Kim, 2012;Yixiang, 2011). In this study, by controlling the endogenous nature of the ownership concentration variable, based on agency theory, we propose the following hypothesis:…”

Section: Ownership Concentrationmentioning

confidence: 99%

Dynamic study of corporate governance structure and firm performance in China

Shao

2019

CMS

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Purpose The paper aims to provide a comprehensive investigation of the relationship between corporate governance (CG) structure and firm performance in Chinese listed firms from 2001 to 2015. The authors’ motivation derives from the fact that the CG system in China is different from those in the US, the UK, Germany, Japan and other countries. Design/methodology/approach A large unbalanced sample, covering more than 22,700 observations in Chinese listed firms, was used to explore, by means of a system-generalized method-of-moments (GMM) estimator, the relationship between CG structure and firm performance to remove potential sources of endogeneity. Findings Results show that Chinese CG structure is endogenously determined by the CG mechanisms investigated: there is no relationship between board size (including independent directors) and firm performance; CEO duality has a significantly negative effect on firm performance; concentration of ownership has a significantly positive influence on firm performance; managerial ownership is negatively correlated with firm performance; state ownership has a significantly positive effect on firm performance; and a supervisory board is positively correlated with firm performance. Practical implications The findings provide policymakers and firm managers with useful empirical guidance concerning CG in China. Originality/value Few integrative studies have examined the impact of CG structure on firm performance in China. This study adds new empirical evidence that the relation between CG structure and performance in China is endogenous and dynamic when controlling for unobserved heterogeneity, simultaneity, and dynamic endogeneity.

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State Dominant and Non-State Dominant Ownership Concentration and Firm Performance: Evidence from China

Cited by 22 publications

References 15 publications

Innovation and R&D Activities in China?s Biotechnology and Pharmaceutical Sectors

Innovation and R&D Activities in China?s Biotechnology and Pharmaceutical Sectors

Green Innovation, Managerial Concern and Firm Performance: An Empirical Study

Dynamic study of corporate governance structure and firm performance in China

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