ZHIHONG YU ZHIHONG.YU@NOTTINGHAM.AC.UK
Associate Professor
The more the better?: foreign ownership and corporate performance in China
Yu, Zhihong; Greenaway, David; Guariglia, Alessandra
Authors
David Greenaway
Alessandra Guariglia
Abstract
We examine the relationship between the degree of foreign ownership and performance of recipient firms, using a panel of 21,582 Chinese firms over the period 2000–2005. We find that joint-ventures perform better than wholly foreign-owned and purely domestic firms. Although productivity and profitability initially rise with foreign ownership, they start declining once it reaches a certain point. This suggests that some domestic ownership is necessary to ensure optimal performance. We referred these findings to a model of a joint-venture, where strategic interactions between a foreign and a domestic owner's inputs may lead to an inverted U-shaped ownership–performance relationship.
Citation
Yu, Z., Greenaway, D., & Guariglia, A. (2014). The more the better?: foreign ownership and corporate performance in China. European Journal of Finance, 20(7-9), https://doi.org/10.1080/1351847X.2012.671785
Journal Article Type | Article |
---|---|
Acceptance Date | Feb 28, 2012 |
Online Publication Date | Jun 22, 2012 |
Publication Date | Jan 1, 2014 |
Deposit Date | Jul 4, 2016 |
Publicly Available Date | Jul 4, 2016 |
Journal | European Journal of Finance |
Print ISSN | 1351-847X |
Electronic ISSN | 1466-4364 |
Publisher | Routledge |
Peer Reviewed | Peer Reviewed |
Volume | 20 |
Issue | 7-9 |
DOI | https://doi.org/10.1080/1351847X.2012.671785 |
Keywords | foreign ownership; corporate performance, China; F2; G32; L25; O5 |
Public URL | https://nottingham-repository.worktribe.com/output/1000331 |
Publisher URL | http://www.tandfonline.com/doi/abs/10.1080/1351847X.2012.671785 |
Additional Information | This is an Accepted Manuscript of an article published by Taylor & Francis in European Journal of Finance on 2014, available online: http://www.tandfonline.com/10.1080/1351847X.2012.671785 |
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