| ID | 137533 |
| Title Proper | Disproportionate ownership structure and IPO long-run performance of non-SOEs in China |
| Language | ENG |
| Author | Wang, Xiaoming ; Cao, Jerry ; Liu, Qigui ; Tang, Jinghua, Tian, Gary Gang |
| Summary / Abstract (Note) | This paper examines the relationship between ownership structures and IPO long-run performance of non-SOEs in China. Although non-SOEs underperform the market in general after IPO but the poor performance is mainly caused by the IPOs with ownership control wedge. Non-SOEs with one share one vote structure outperform those with control-ownership wedge by 30% for three years post-IPO performance in adjusted buy-and-hold returns. Non-SOEs with control-ownership wedge have higher frequency of undertaking value-destroying related party transactions. These findings suggest that non-SOEs need to improve corporate governance such as disproportionate ownership structure to better safeguard the interest of long-run shareholders. |
| `In' analytical Note | China Economic Review Vol.32, No. ; Feb.2015: p.27-42 |
| Journal Source | China Economic Review 2015-03 32 |
| Key Words | Economic Reforms ; China ; Corporate Governance ; SOEs ; Wage Policy ; IPOs ; Disproportionate Ownership ; Wage Control |