التفاصيل البيبلوغرافية
| العنوان: |
The impact of high-pressure political reforms on state-owned enterprises: Evidence from China. |
| المؤلفون: |
Bae, Sung C.1 (AUTHOR) bae@bgsu.edu, Kwon, Taek Ho2 (AUTHOR) thk5556@cnu.ac.kr, Liu, Chenyang1,2 (AUTHOR) liucy@o.cnu.ac.kr |
| المصدر: |
International Review of Financial Analysis. Jan2024, Vol. 91, pN.PAG-N.PAG. 1p. |
| مصطلحات موضوعية: |
Political reform, Government business enterprises, Rate of return on stocks, Cost control, Corruption, Agency theory |
| مصطلحات جغرافية: |
China |
| مستخلص: |
Taking the case of high-pressure political reforms including the ongoing anti-corruption campaign in China, we investigate the impact of such reforms on the performance of Chinese state-owned enterprises (SOEs) from the agency problem perspective. We report that before the reforms, SOEs significantly underperform non-SOEs in most performance measures, consistent with the existing evidence. Following the reforms, however, the performance gaps between SOEs and non-SOEs become insignificant or even reversed. Our results of positive impacts of the reforms on overall performance, cost control, operating efficiency and cash positions and their negative impacts on investment levels and efficiency for SOEs are in supportive of our hypotheses based on the agency theory. We further find that the state as SOEs' controlling shareholder is the primary beneficiary of the reforms through higher tax collections from SOEs, though incurring a loss in shareholder stock returns. We also report a few cases of industry heterogeneity in the impacts. Our results lend strong evidence that the political reforms empower the state to deter SOEs' corrupt practices and align their business decisions with the state's political objectives mainly by mitigating agency problems in Chinese SOEs. • The study investigates the effects of China's political reforms on SOEs from the perspective of agency problems. • Before the reforms, SOEs underperform non-SOEs, but the gap decreases significantly after the reforms. • The reforms impact overall performance, cost control, operating efficiency and cash position positively, but investment levels negatively. • The state garners higher taxes from SOEs at the expense of stock returns following the reforms. [ABSTRACT FROM AUTHOR] |
| قاعدة البيانات: |
Finance Source |
