재무연구 제 권 호 (2011년 11월)
Asian Review of Financial Research, Vol., No..
pp.349~371
pp.349~371
The Effects of Ownership Structure and Subsidies on the Privatized Firm Values in China
Kim, Sunghwan Assistant Professor, School of Business Administration, Kyungpook National University
Tan, Jin Assistant Professor, Corresponding Author, School of Business Administration, Kyungpook National University
Choi, Miniung Graduate Student, School of Business Administration, Kyungpook National University
Using firm level data of listed manufacturing firms, public services and utilities (stock A) at Shanghai and Shenzhen Security Exchanges from 1994 to 2008, we investigate the effects of privatization in China on the values of privatized firms. In particular, we analyzed how the state ownership, firm ownership, individual ownership, foreign ownership, ownership concentration and government subsidies affect firm values after privatization. As a result, we found that (1) the privatization improved the value of the firm, that (2) the state ownership showed a negative effect, while legal ownership, individual ownership and foreign ownership showed a positive effect on the firm value, that (3) The ownership concentration by the largest shareholder showed a U shaped relationship with values of privatized firms and that (4) government subsidies for firms showed a positive effect on the firms in privatization. From this study, we can infer that the privatization of firms in China has been successfully implemented not only through ownership transfer from the government to the private sector and effective subsidies from the government.
Kim, Sunghwan
Tan, Jin
Choi, Miniung
Using firm level data of listed manufacturing firms, public services and utilities (stock A) at Shanghai and Shenzhen Security Exchanges from 1994 to 2008, we investigate the effects of privatization in China on the values of privatized firms. In particular, we analyzed how the state ownership, firm ownership, individual ownership, foreign ownership, ownership concentration and government subsidies affect firm values after privatization. As a result, we found that (1) the privatization improved the value of the firm, that (2) the state ownership showed a negative effect, while legal ownership, individual ownership and foreign ownership showed a positive effect on the firm value, that (3) The ownership concentration by the largest shareholder showed a U shaped relationship with values of privatized firms and that (4) government subsidies for firms showed a positive effect on the firms in privatization. From this study, we can infer that the privatization of firms in China has been successfully implemented not only through ownership transfer from the government to the private sector and effective subsidies from the government.
Ownership Structure,Subsidy,China,Privatization,Firm Value
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