The impact of corporate governance on state-owned and non-state-owned firms efficiency in China

He, Yixin; Chiu, Yung‐ho; Bin, Zhang

doi:10.1016/j.najef.2015.06.001

Cited by 39 publications

(26 citation statements)

References 110 publications

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“…Their result highlights the positive role of government in state-owned enterprise. In contrast, He et al (2015) found that the inefficiency of stateowned enterprise in China mainly due to corporate governance mechanism. Their results highlight that the state-owned companies improper corporate governance, bringing down these firms' efficiency due to unclear property rights.…”

Section: And Mycite Indexesmentioning

confidence: 92%

“…The evidence on the performance of state-owned (SOE) enterprise in Malaysia is rather scarce. Most of the previous literatures on state-owned enterprise focus in emerging countries such as China and Hong Kong (Wang & Yung 2011;Hu et al 2013;He et al 2015). The result is rather mixed.…”

Section: And Mycite Indexesmentioning

confidence: 99%

“…Despite of that, SOEs have contributed positively to the national economy, leading the government's bumiputra agenda, reducing unemployment and encouraging diversity. Jurnal Pengurusan 57(2019), Galley Proof ISSN 0127-2713 and MyCite Indexes LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT STATE-OWNED ENTERPRISE AND ITS GOVERNANCE Previous researches have indicated that SOEs are usually associated with inefficiency and poor governance (He et al 2015;Menozzi, Gutiérrez Urtiaga & Vannoni 2011). This inefficiency is due to several reasons.…”

Section: Background Of the State-owned Enterprise In Malaysiamentioning

confidence: 99%

“…In contrast, many studies provide evidences that state or government ownership in SOE negatively affect firm performance (Menozzi et al 2011), CEO pay (Cao, Pan & Tian 2011), market forces (Hu et al, 2013) and lead to lowest inefficiency (He et al 2015). Most of the studies done in SOE in emerging countries China as well as code country i.e Italy in which debt financing systems depend very much on internal funds, ownership structures are more concentrated, less shareholder activism and low legal enforcement.…”

Section: Political Connection and Firm Performancementioning

confidence: 99%

“…Most of the studies done focus on the listed firms due to market forces demand on the efficiency of listed firms (Ozkan 2011;Sigler 2011;Horton, Millo & Serafeim 2012;Lam, McGuinness & Vieito 2013). There are less studies on the efficiency of state-owned enterprise due to the strong government intervention (He, Chiu & Zhang 2015). Yet, state-owned enterprise is frequently regarded as a major cause of corporate inefficiency (Capobianco & Jurnal Pengurusan 57(2019), Galley Proof ISSN 0127-2713…”

Section: Introductionmentioning

confidence: 99%

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Directors’ Remuneration, Firm Performance and Political Connection: Evidence from State-Owned Enterprise (SOE) in Malaysia

Marzuki

Shukri²

2019

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The objective of this paper is to examine the relationship between directors' remuneration and firm performance among state-owned enterprise (SOE) in Malaysia. In addition, we examine whether board size and government's role moderate the relationship between directors' remuneration and firm performance in SOE. Using panel data regression model on 118 firm-year observations of state-owned enterprise in Malaysia from 2011 to 2013, this study finds there is positive relationship between directors' remuneration and firm performance. The result provides supports that directors' remuneration acts as incentive to board of directors to perform their monitoring task. The result also indicates that larger board size and government play an important role in enhancing firm performance of state-owned enterprise in Malaysia. Nevertheless, when we interact both variables with directors' remuneration, the result indicates that larger board size and political connected directors moderate the positive relationship between firm performance and directors' remuneration. Our result provides evidence that the interaction between directors' remuneration and board size as well as political connected directors explain firm performance among state owned enterprise in Malaysia. ABSTRAKObjektif makalah ini adalah untuk mengkaji hubungan antara ganjaran pengarah dan prestasi firma di kalangan syarikat milik kerajaan negeri (SOE) di Malaysia. Di samping itu, kami mengkaji sama ada saiz lembaga pengarah dan peranan kerajaan menyederhanakan hubungan antara ganjaran pengarah dan prestasi firma dalam SOE. Dengan menggunakan model regresi data panel ke atas 118 firma perusahaan milik kerajaan negeri di Malaysia dari tahun 2011 hingga 2013, kajian ini mendapati terdapat hubungan positif antara imbuhan pengarah dan prestasi firma. Dapatan analisa ini menyokong pernyataan bahawa ganjaran pengarah bertindak sebagai insentif kepada lembaga pengarah syarikat untuk melaksanakan tugas pemantauan mereka. Dapatan analisa juga menunjukkan bahawa saiz lembaga pengarah yang lebih besar dan hubungan dengan kerajaan memainkan peranan penting dalam meningkatkan prestasi firma milikan kerajaan negeri di Malaysia. Walau bagaimanapun, apabila diinteraksikan kedua-dua pemboleh ubah dengan imbuhan pengarah, hasilnya menunjukkan bahawa saiz lembaga yang lebih besar dan pengarah yang ada hubungan dengan politik menyederhanakan hubungan positif antara prestasi firma dan ganjaran pengarah. Dapatan analisa kami memberikan bukti bahawa interaksi antara ganjaran pengarah dan saiz lembaga pengarah serta pengarah yang ada hubungan politik merupakan faktor yang mempengaruhi prestasi firma milikan kerajaan negeri di Malaysia.Kata kunci: Syarikat Milikan Kerajaan Negeri (SOE); ganjaran pengarah; prestasi firma; hubungan politik

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Section: And Mycite Indexesmentioning

confidence: 92%

Section: And Mycite Indexesmentioning

confidence: 99%

Section: Background Of the State-owned Enterprise In Malaysiamentioning

confidence: 99%

Section: Political Connection and Firm Performancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Directors’ Remuneration, Firm Performance and Political Connection: Evidence from State-Owned Enterprise (SOE) in Malaysia

Marzuki

Shukri²

2019

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Does high debt ratio influence Chinese firms’ performance? A semiparametric stochastic frontier approach with zero inefficiency

2020

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The performance of private companies in China before and during the global financial crisis: firms’ characteristics and entrepreneurs’ attributes

Fracasso

Jiang

2021

Econ Change Restruct

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This work sheds light on how firm- and entrepreneur-specific attributes covariate with Chinese private firms’ growth rates before and during the global financial crisis. In order to do so, we exploit the exceptional presence of data regarding the firms’ sales over the previous three years in the 2010 China Private Enterprises Survey. Firms run by entrepreneurs with a high level of education and a positive subjective perception of their economic and social status tend to grow more in both periods. The age and the gender of the entrepreneurs, on the contrary, are not associated with different growth performances. As shown in the literature, companies that are smaller, more productive and have higher capital at start-up perform better in both periods. Notably, the relationship between firm growth rates and other relevant factors changes between 2007/2008 and 2008/2009: privatized companies outperform the others before the crisis, whereas joint-stock enterprises and companies with articulated systems of corporate governance do better in the crisis period. These and other novel results contribute to the understanding of the heterogeneous performances of the private firms in China and of the evolution of entrepreneurship during its transition toward a market-oriented economy.

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The impact of corporate governance on state-owned and non-state-owned firms efficiency in China

Cited by 39 publications

References 110 publications

Directors’ Remuneration, Firm Performance and Political Connection: Evidence from State-Owned Enterprise (SOE) in Malaysia

Directors’ Remuneration, Firm Performance and Political Connection: Evidence from State-Owned Enterprise (SOE) in Malaysia

Does high debt ratio influence Chinese firms’ performance? A semiparametric stochastic frontier approach with zero inefficiency

The performance of private companies in China before and during the global financial crisis: firms’ characteristics and entrepreneurs’ attributes

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