Ownership Structure, Corporate Status and Corporate Performance in Chinese Business Groups

2008 ◽  
Author(s):  
Yue Qi ◽  
Lan Hai-lin ◽  
Jiang Luan
Keyword(s):  
Ownership Structure ◽  
Corporate Performance ◽  
Business Groups ◽  
Chinese Business

scholarly journals Ownership structure, ongoing related party transactions and corporate performance: evidence from Chinese listed firms

2014 ◽  
Vol 11 (2) ◽  
pp. 446-464 ◽  
Author(s):  
Mei-Ai Cheng ◽  
Noel W. Leung
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Corporate Performance ◽  
Business Groups ◽  
Positive Association ◽  
Governance Framework ◽  
Related Party Transactions ◽  
Listed Firms ◽  
Business Operations ◽  
Economic Reality

This paper is to review the association of the magnitudes of ongoing related party transactions with the largest shareholders (ORPTs) on the ownership structure and their impact on corporate performance of Chinese listed firms after substantial reform of Chinese corporate governance framework in 2005. Previous literature found that the largest shareholders used related party transactions to tunnel or prop up their controlled firms for their own benefits. Based on a sample of 6657 firm-year observations from 2007 to 2011, the authors find that there is still a positive association between ownership of the largest shareholders and ORPTs, but no significant association between ORPTs and corporate performance, and therefore, there is no evidence that the largest shareholders use ORPTs to tunnel or prop-up their listed firms. This study also finds that there is an endogenous effect of ownership of the largest shareholders on ORPTs, and the authors suggest that the largest shareholders still have to retain the control of Chinese listed firms because in economic reality, those listed firms are still an integral part of business operations of the largest shareholders (business groups), i.e. alignment effect.

Origins and Growth of Big Businesses in China

2021 ◽  
pp. 62-87
Author(s):  
Keun Lee
Keyword(s):  
Stock Markets ◽  
Commercial Banks ◽  
Vertical Structure ◽  
Business Groups ◽  
High Growth ◽  
The State ◽  
The Core ◽  
Chinese Business ◽  
Catch Up ◽  
Second Tier

Chapter 3 elaborates on the origins of large businesses, particularly business groups, which have been leading the economic catch-up in China. The majority of firms listed on the stock markets in China are business groups, which are comparable to their counterparts in Japan (keiretsu) and in Korea (chaebols). However, the chief differences between large business groups in China and those in Korea and Japan are that the former are less diversified and are owned by the state, not by particular families (as in Korea) or commercial banks (as in Japan). Chinese business groups typically maintain a vertical structure, with the core company at the first tier and closely related companies at the second tier. Their performance in the 2000s also had strengths (high growth) and weaknesses (lower profitability) similar to those in neighboring countries, such as chaebols in the 1990s in Korea.

Corporate governance mechanisms and corporate performance of firms in Nigeria and Ghana

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martha Coleman ◽  
Mengyun Wu
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Financial Distress ◽  
Corporate Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Content Type ◽  
Structure Index ◽  
The Impact ◽  
The Relationship

PurposeThis study investigates the impact of corporate governance (CG) mechanisms with inclusion of compliance and diligence index on corporate performance (CP) of firms in Nigeria and Ghana. It further examines the moderating effect of financial distress on the relationship between CG and CP.Design/methodology/approachThe study used panel data of 102 nonfinancial listed firms of Nigeria and Ghana stock exchange for the period 2012–2016 with total observation of 510. The study first used OLS in estimating the influence of CG mechanisms on CP. Due to multicollinearity in the independent variables, ridge regression was employed.FindingsIt was revealed that ownership structure index and board compliance and diligence index, board size, board disclosure, ownership structure, shareholders' right and board compliance and diligence index had positive influence on ROA and ROE. Growth of Tobin's Q depends on board procedure and board compliance and diligence index. Also, financial distress (ZFS) negatively moderates the relationship between board structure index, board disclosure index, board procedure index, shareholders' right and performance (ROA and ROE) but negatively moderates between ownership structure index and Tobin's Q.Practical implicationsThis study provides interesting findings to policymakers in full implementation of CG codes as stated by OCED (2015) by West African firms with greater emphasis on compliance and diligence index since it positively influences all CP measures.Originality/valueThe study provides evidence of the importance of the introduction of the new index: compliance and diligence, which looks at disclosure of CSR activities. This has been overlooked by most researchers especially in Africa in assessing quality CG mechanisms.

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