Does Government Ownership Always Reduce Firm Values? Evidence from Publicly Listed Companies in China

Ran Zhang; Largay, III, James A.
August 2008
Academy of Management Perspectives;Aug2008, Vol. 22 Issue 3, p116
Academic Journal
The article discusses the results of a research paper published in a 2007 issue of the "Journal of Comparative Economics," by Lihui Tian and Saul Estrin, titled "Retained state shareholding in Chinese PLCs: Does government ownership always reduce corporate value?" The study investigated the degree to which government ownership of Chinese corporations impaired their performance. Publicly listed companies (PLCs) on the Chinese stock exchanges are often majority owned by the Chinese government. The results indicated that the best performance was found among firms which faced either the least or the greatest amount of government involvement.


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