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- Title
FIRM PERFORMANCE AND THE OWNERSHIP OF THE LARGEST SHAREHOLDER.
- Authors
Xiaoyue Chen; Jeong-Bon Kim; Steven Shuye Wang; Xiaodong Xu
- Abstract
We examine the relationship between cash-flow rights held by the largest shareholders and firm performance in Chinese capital market. Using a sample of all listed A-share firms between 2000 and 2003, we find that there are ‘region effects’ with an ‘M’ shape in the relationship between cash flow rights held by the largest shareholder and firm performance. The non-monotonic variations of firm performance associated with changes of the largest shareholdings suggest that there may be an optimal ownership structure existed in listed Chinese firms. We also find that firms under the control of largest state shareholders have poorer performance than that under the control of largest non-state shareholders.
- Subjects
CHINA; CASH flow; CASH management; STOCKHOLDERS; CAPITAL market; BUSINESS finance; ORGANIZATIONAL structure
- Publication
Corporate Ownership & Control, 2007, Vol 4, Issue 3, p126
- ISSN
1727-9232
- Publication type
Article