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Title: Shareholding structure, corporate governance and firm performance in case of China's listed companies
Author: Chen, Aimin
Awarding Body: University of Birmingham
Current Institution: University of Birmingham
Date of Award: 2004
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This thesis aims to study the impact of shareholding structure on corporate governance and firm performance in case of China. Firstly, with the dataset of 714 listed companies during 1998-2000, we use panel data methods to examine whether the existing shareholding structure, which is directly or indirectly controlled by the state, can bring about proper corporate governance and in turn the improvement of firm performance. Our results show state and LP shareholdings are negatively related to firm performance for improper governance pattern. Secondly, we further examine the impact of shareholding structure on the sensitivity of investment to internal funds using the dataset of 802 companies over the period of 1998-2002. With dynamic panel data estimation methodology, we find state shareholding leads to over investment and management entrenchment problems. Finally, we examine the share price reaction towards several types of M&A (merger and acquisition) events. The results reveal that shares sale, which involves changing the existing shareholding structure, is the most effective way of improving corporate governance in the market for corporate control. Considering all research results of this thesis, we conclude that shareholding structure under the state control has a negative impact on corporate governance and in turn firm performance.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available