A contractual analysis of state versus private ownership

We uniquely analyze the advantages and disadvantages of private ownership versus state ownership under various circumstances by focusing on three aspects: external risk, internal governance, and relative importance of owners versus managers. Our theoretical analysis indicates that private ownership...

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Main Authors: Jiang, Kun, Wang, Susheng
Format: Article
Published: Elsevier 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/50062/
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author Jiang, Kun
Wang, Susheng
author_facet Jiang, Kun
Wang, Susheng
author_sort Jiang, Kun
building Nottingham Research Data Repository
collection Online Access
description We uniquely analyze the advantages and disadvantages of private ownership versus state ownership under various circumstances by focusing on three aspects: external risk, internal governance, and relative importance of owners versus managers. Our theoretical analysis indicates that private ownership is better than state ownership if the business environment is risky, corruption is limited, or the manager plays a more important role than the owner. Our empirical analysis supports our theoretical findings and reveals that better internal governance, more external risk and greater importance of the manager will magnify the benefits of privatization.
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spelling nottingham-500622020-05-04T18:43:34Z https://eprints.nottingham.ac.uk/50062/ A contractual analysis of state versus private ownership Jiang, Kun Wang, Susheng We uniquely analyze the advantages and disadvantages of private ownership versus state ownership under various circumstances by focusing on three aspects: external risk, internal governance, and relative importance of owners versus managers. Our theoretical analysis indicates that private ownership is better than state ownership if the business environment is risky, corruption is limited, or the manager plays a more important role than the owner. Our empirical analysis supports our theoretical findings and reveals that better internal governance, more external risk and greater importance of the manager will magnify the benefits of privatization. Elsevier 2017-04-30 Article PeerReviewed Jiang, Kun and Wang, Susheng (2017) A contractual analysis of state versus private ownership. China Economic Review, 43 . pp. 142-168. ISSN 1043-951X Contractual analysis; State ownership; Private ownership; Incentives; External risks; Internal corruption https://doi.org/10.1016/j.chieco.2017.01.011 doi:10.1016/j.chieco.2017.01.011 doi:10.1016/j.chieco.2017.01.011
spellingShingle Contractual analysis; State ownership; Private ownership; Incentives; External risks; Internal corruption
Jiang, Kun
Wang, Susheng
A contractual analysis of state versus private ownership
title A contractual analysis of state versus private ownership
title_full A contractual analysis of state versus private ownership
title_fullStr A contractual analysis of state versus private ownership
title_full_unstemmed A contractual analysis of state versus private ownership
title_short A contractual analysis of state versus private ownership
title_sort contractual analysis of state versus private ownership
topic Contractual analysis; State ownership; Private ownership; Incentives; External risks; Internal corruption
url https://eprints.nottingham.ac.uk/50062/
https://eprints.nottingham.ac.uk/50062/
https://eprints.nottingham.ac.uk/50062/