The Case of Chinese Stock Companies 1794. Xu and Wang investigate whether ownership structure significantly affects the performance of publicly listed firms in China and if so, in what way. With public listed stocks, one can quantify the ownership mix and concentration, which makes it possible to study this issue. The authors use the recent literature on the role of large institutional shareholders in corporate governance as a theoretical base. The effect of concentrated ownership is greater with companies dominated by institutions than with those dominated by the state.
Labor productivity tends to decline as the proportion of state shares increases.
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