Journal article
State control, legal investor protection, and ownership concentration: Evidence from China
S Wu, N Xu, Q Yuan
Corporate Governance an International Review | WILEY | Published : 2009
Abstract
Manuscript Type: Empirical Research Question/Issue: To control for the omitted-variables and aggregation biases problem existing in previous cross-country studies, our paper investigates the relationship of ownership concentration and legal investor protection across regions and over time in one emerging economy, China, during the period 1992 to 2003. Moreover, this paper examines whether state control affects this relationship. Research Findings/Results: For state-controlled firms, we cannot find the typical inverse relationship between ownership concentration and legal investor protection documented by La Porta, Lopez-de-Silanes, Shleifer, and Vishny (1998), since state per se works as a s..
View full abstractGrants
Awarded by National Natural Science Foundation of China
Awarded by Ministry of Education of China
Funding Acknowledgements
We are grateful to editor William Judge, an associate editor, two anonymous referees, Yifeng Shen, Xinzhong Xu, Hua Zhang, and Yi Zhang for providing helpful comments and suggestions that significantly improved the paper. We also received valuable comments from seminar participants at the 2005 Corporate Governance Research Incubator in Shanghai and the 30<SUP>th</SUP> Anniversary conference of the Journal of Banking and Finance in Beijing. Financial support from the National Natural Science Foundation of China (Nos.70588001 and 70802002) and the Social Science Research Project supported by the Ministry of Education of China (No. 08JC630001) are also gratefully acknowledged. Part of this research was conducted when Dr. Xu was a Ph.D. student in the School of Management at Xiamen University. All errors remain our responsibility.