The Relationship Between Valuation and Ownership of Listed Firms in China

Hovey, Martin; Li, Larry; Naughton, Tony

doi:10.1111/1467-8683.00012

Cited by 105 publications

(74 citation statements)

References 36 publications

(41 reference statements)

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“…Zouari and Taktak (2014) support the neutrality hypothesis and show that there is no relation between ownership concentration and the financial performance of Islamic banks measured by ROA and ROE. On the corporate level, using a sample of firms listed on the Shanghai and Shenzhen stock markets over the period 1997-1999, Hovey, Li and Naughton (2003 conclude that ownership concentration is irrelevant to firm performance measured by Tobin's Q.…”

Section: The Relationship Between Ownership Concentration and Bank Pementioning

confidence: 99%

Does Ownership Structure Matter for Bank Performance in the MENA Region? An Empirical Evidence

Fathi

ElBannan

2017

AJFA

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The aim of this study is to examine the effect of bank ownership structure on bank performance in Middle East and North Africa (MENA) region using the balanced scorecard (BSC) method. Usinga panel data of 137 commercial banks during the period from 2010 to 2014 across twelve countries in the MENA region, the study highlights the effect of ownership type and concentration on bank performance using the balanced scorecard as a performance measurement technique. The results show that government ownership and foreign ownership have statistically significant positive effect on bank performance measured by BSC index. On the contrary, domestic private ownership and ownership concentration have statistically significant negative effect on bank's BSC index. Additional analysis on each of the BSC perspective separately reveals that ownership concentration is negatively correlated with the customer and learning and growth factors, while positively correlated with the internal process factor. Government ownership shows statistically significant negative effect on the financial factor and the internal process factor while associated with statistically significant positive effect on the customer factor. Foreign ownership has statistically significant positive effect on the financial and the internal process factor but does not have statistically significant effect on the other two perspectives. Finally, Domestic private ownership reveals a statistically significant negative effect on the learning and growth factor.

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Section: The Relationship Between Ownership Concentration and Bank Pementioning

confidence: 99%

Does Ownership Structure Matter for Bank Performance in the MENA Region? An Empirical Evidence

Fathi

ElBannan

2017

AJFA

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“…listed SOEs for the period 1994-1998 and also found that the state had a negative impact on listed firm performance. Wei and Varela (2003) and Hovey, Li and Naughton (2003) similarly found state ownership had a negative effect on firm value. Similar results were reported by Chen (2001) Gul and Zhao (2001), Gul (1999), Wei, Xie and Zhang (2005) and Xu and Wang (1999 Using a "markets" approach to performance therefore suggests that for the state to continue direct ownership of listed firms in China is not optimal.…”

Section: Empirical Evidencementioning

confidence: 90%

“…The findings in the literature show that ownership structure does significantly influence the performance and value of Chinese firms (Xu & Wang, 1999;Chen & Gong, 2000;Gul & Zhao, 2001;Sun, Tong, & Tong, 2002;Hovey, Li, & Naughton, 2003;Hovey, 2005b). The emphasis in these studies has been on the primary forms of state holdings, along with other ownership types in China.…”

Section: Empirical Evidencementioning

confidence: 99%

A survey of enterprise reforms in China: The way forward

Hovey

Naughton

2007

Economic Systems

Self Cite

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The strategic importance of the state owned enterprise (SOE) sector to the Chinese economy cannot be underestimated, thus the success of SOE reform is a significant factor in China's future economic prosperity. The dilemma facing state authorities is to develop market-orientated corporations while at the same time coping with potentially high unemployment and a range of equity and social justice issues. This paper presents an analysis of the current issues in SOE reform in China, drawing on relevant empirical evidence, and proposes a strategic direction and a framework for reform that challenges

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“…As state ownership and LP ownership are highly correlated, at -84.98%, the regressions are run separately for them. State ownership has been found to be negatively correlated to performance in the literature (Hovey & Naughton, 2007) (see for example, Chen & Gong, 2000;Gul & Zhao, 2001;Hovey, Li, & Naughton, 2003;Wei & Varela, 2003;Xu & Wang, 1999) , however the influence of state holdings on leverage is unknown. It is expected to be negative as the higher the state ownership, the less availability to equity capital and the higher level of implied guarantee.…”

Section: Equity Ownershipmentioning

confidence: 99%

“…It is expected to be negative as the higher the state ownership, the less availability to equity capital and the higher level of implied guarantee. Prior research on legal person holdings suggests that LP ownership i s positively correlated with performance (Hovey & Naughton, 2007) (see for example, Chen & Gong, 2000;Gul & Zhao, 2001;Hovey et al, 2003;Xu & Wang, 1999), however the influence of state holdings on leverage is unknown. Public Shares is equity ownership of publicly held tradable A-shares.…”

Section: Equity Ownershipmentioning

confidence: 99%

Leverage, Profitability and the Ownership Structures of Listed Firms in China

Hovey

2007

SSRN Journal

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The relationship between leverage, profitability and a firm's ownership structure in China is investigated in this paper. It is an exploratory study based on all firms listed on the Shanghai and Shenzhen stock exchanges from 1999 to 2005. The results of the empirical analysis are reported in this paper.The most significant result is that foreign holdings are found to have a significant relationship with the leverage of listed firms in China. Whereas, somewhat unexpectedly, institutional ownership, through legal person holding companies, state ownership and private holdings are not found to have a significant relationship with the capital structure choices of firms in China. The results also suggest that some firm-specific factors that are relevant for explaining firm leverage generally referred to in studies in developed economies, such as profitability, growth opportunities, size and tax shields, are also relevant in China. The age of the firms and the industry t o which they principally belong also has significant bearing. Yet direct government grants and the use of an internationally renowned auditing firm do not show a significant relationship.

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The Relationship Between Valuation and Ownership of Listed Firms in China

Cited by 105 publications

References 36 publications

Does Ownership Structure Matter for Bank Performance in the MENA Region? An Empirical Evidence

Does Ownership Structure Matter for Bank Performance in the MENA Region? An Empirical Evidence

A survey of enterprise reforms in China: The way forward

Leverage, Profitability and the Ownership Structures of Listed Firms in China

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