The more the better?: foreign ownership and corporate performance in China
We examine the relationship between the degree of foreign ownership and performance of recipient firms, using a panel of 21,582 Chinese firms over the period 2000–2005. We find that joint-ventures perform better than wholly foreign-owned and purely domestic firms. Although productivity and profitabi...
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| Format: | Article |
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Taylor & Francis
2014
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| Online Access: | https://eprints.nottingham.ac.uk/34407/ |
| _version_ | 1848794845862166528 |
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| author | Yu, Zhihong Greenaway, David Guariglia, Alessandra |
| author_facet | Yu, Zhihong Greenaway, David Guariglia, Alessandra |
| author_sort | Yu, Zhihong |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We examine the relationship between the degree of foreign ownership and performance of recipient firms, using a panel of 21,582 Chinese firms over the period 2000–2005. We find that joint-ventures perform better than wholly foreign-owned and purely domestic firms. Although productivity and profitability initially rise with foreign ownership, they start declining once it reaches a certain point. This suggests that some domestic ownership is necessary to ensure optimal performance. We referred these findings to a model of a joint-venture, where strategic interactions between a foreign and a domestic owner's inputs may lead to an inverted U-shaped ownership–performance relationship. |
| first_indexed | 2025-11-14T19:22:40Z |
| format | Article |
| id | nottingham-34407 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:22:40Z |
| publishDate | 2014 |
| publisher | Taylor & Francis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-344072020-05-04T20:18:18Z https://eprints.nottingham.ac.uk/34407/ The more the better?: foreign ownership and corporate performance in China Yu, Zhihong Greenaway, David Guariglia, Alessandra We examine the relationship between the degree of foreign ownership and performance of recipient firms, using a panel of 21,582 Chinese firms over the period 2000–2005. We find that joint-ventures perform better than wholly foreign-owned and purely domestic firms. Although productivity and profitability initially rise with foreign ownership, they start declining once it reaches a certain point. This suggests that some domestic ownership is necessary to ensure optimal performance. We referred these findings to a model of a joint-venture, where strategic interactions between a foreign and a domestic owner's inputs may lead to an inverted U-shaped ownership–performance relationship. Taylor & Francis 2014 Article PeerReviewed Yu, Zhihong, Greenaway, David and Guariglia, Alessandra (2014) The more the better?: foreign ownership and corporate performance in China. European Journal of Finance, 20 (7-9). pp. 681-702. ISSN 1466-4364 foreign ownership; corporate performance China; F2; G32; L25; O5 http://www.tandfonline.com/doi/abs/10.1080/1351847X.2012.671785 doi:10.1080/1351847X.2012.671785 doi:10.1080/1351847X.2012.671785 |
| spellingShingle | foreign ownership; corporate performance China; F2; G32; L25; O5 Yu, Zhihong Greenaway, David Guariglia, Alessandra The more the better?: foreign ownership and corporate performance in China |
| title | The more the better?: foreign ownership and corporate performance in China |
| title_full | The more the better?: foreign ownership and corporate performance in China |
| title_fullStr | The more the better?: foreign ownership and corporate performance in China |
| title_full_unstemmed | The more the better?: foreign ownership and corporate performance in China |
| title_short | The more the better?: foreign ownership and corporate performance in China |
| title_sort | more the better?: foreign ownership and corporate performance in china |
| topic | foreign ownership; corporate performance China; F2; G32; L25; O5 |
| url | https://eprints.nottingham.ac.uk/34407/ https://eprints.nottingham.ac.uk/34407/ https://eprints.nottingham.ac.uk/34407/ |