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State ownership and listed firm performance: a universally negative governance relationship?

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Abstract

Our analysis of more than 1,000 Chinese listed firms, 2003–2005, reveals a positive association between state ownership (SO) and firm performance. Arguably, if SO “causes” performance, it must be through the channel of agency cost. Therefore, our paper checks the robustness of this positive SO/performance finding by analyzing the role of agency cost as a mediator. It emerges that SO in the Chinese context may represent a strategic asset rather than an agency burden. However, it is not clear whether this is an outcome driven by efficiency or power.

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  1. Loughborough University Business School, Loughborough, LE11 3TU, UK

    Trien Vinh Le & Trevor Buck

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  1. Trien Vinh Le
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  2. Trevor Buck
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Correspondence to Trien Vinh Le.

Appendix

Appendix

See Table 4.

Table 4 Industries by level of state ownership
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Le, T.V., Buck, T. State ownership and listed firm performance: a universally negative governance relationship?. J Manag Gov 15, 227–248 (2011). https://doi.org/10.1007/s10997-009-9098-5

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