The state as owner—China’s experience

2020 ◽  
Vol 36 (2) ◽  
pp. 362-379 ◽  
Author(s):  
Curtis J Milhaupt
Keyword(s):  
Ownership Structure ◽  
State Ownership ◽  
The State ◽  
Business Enterprise ◽  
State Capitalism ◽  
Policy Makers ◽  
Corporate Form ◽  
Governance Challenges ◽  
Policy Objectives

Abstract This essay explores China’s experience with state ownership of business enterprise. After a short historical survey of the rise, fall, and re-emergence of the state-owned enterprise (SOE) as a form of business organization, the essay examines the creation, ownership structure, and role of SOEs under Chinese state capitalism. It further discusses the government’s ongoing efforts to reform its SOEs. These efforts are illuminating because they highlight the serious tension inherent in the party-state’s dual goals of maintaining SOEs as a tool for advancing non-financial social and industrial policy objectives, and addressing the corporate governance challenges of these enterprises. The essay concludes by examining implications from the preceding analysis—for China’s domestic economy, for policy-makers outside China, and for the corporate form itself.

The Doctrinal Basis of The Rights of Company Shareholders

1998 ◽  
Vol 57 (3) ◽  
pp. 554-588 ◽  
Author(s):  
Ross Grantham
Keyword(s):  
Political Power ◽  
The State ◽  
Company Law ◽  
Corporate Form ◽  
Moral Force ◽  
The Law ◽  
Normative Implications

THE concept of ownership is a complex, powerful and controversial idea. In law it explains, justifies and gives moral force to a host of rights and duties as well as serving to legitimate the allocation of wealth and privilege. The influence of this idea is, furthermore, everywhere embodied in the law. In company law, legal and economic conceptions have both rested on and have been shaped by the normative implications of ownership. Historically, ownership was the principal explanation and justification for the central role of shareholders in corporate affairs. As owners, shareholders were entitled to control the management of the company and to the exclusive benefit of the company's activities. Ownership also served to legitimate the corporate form itself. So long as it was owned by individuals the economic and political power of the company was both benign and a bulwark against the intrusion of the state.

The Role of the State in MENA Capital Markets

2019 ◽  
pp. 344-362
Author(s):  
Ali Coskun ◽  
Serhat Cevikel ◽  
Zeynep Özçelik ◽  
Vedat Akgiray
Keyword(s):  
Capital Markets ◽  
Institutional Ownership ◽  
State Ownership ◽  
The State ◽  
Best Interests ◽  
Mena Region ◽  
The Public ◽  
Role Of The State ◽  
Detailed Picture

Within the Middle East and North Africa (MENA) region, a common feature of corporate financial structures is that governments have always been majority owners of many commercial companies. This chapter provides a detailed picture of state ownership in the region. It finds evidence of a decline in the privatization effort in the 2000s. Privatization may be important for the development of institutional ownership, yet, in some cases, it may not be in the best interests of the public, when cronyism is prevalent. In this context, it is important to understand the role of the state in the growth of capital markets in the region, and the efficiency of the overall development model.

Debt and ownership structure: evidence from Italy

2016 ◽  
Vol 16 (5) ◽  
pp. 883-905 ◽  
Author(s):  
Fabrizio Rossi ◽  
Richard J. Cebula
Keyword(s):  
Ownership Structure ◽  
Institutional Investors ◽  
Agency Costs ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Ownership Concentration ◽  
Policy Makers ◽  
Content Type ◽  
Practical Implications

Purpose The purpose of this study is to investigate the relationship between the debt and ownership structure of a sample of Italian-listed companies to measure the role assumed in the control and monitoring of agency costs. Design/methodology/approach This study examines a balanced panel data, using both a random effects model and a generalized method of moments model to better capture any problems related to the endogeneity of the variables in the model. Findings The results provide evidence of a positive relationship between debt and ownership concentration on the one hand and a negative relationship between debt and institutional investors on the other hand. The debt seems to assume both functions, i.e. the disciplinary role of substitute at low levels of ownership concentration and a complementary role at high levels of ownership concentration. Practical implications This study provides three practical implications. The first is that the complementarity between debt and ownership concentration provides evidence of the entrenchment effect and tends to weaken the company financially. Second, the results also provide useful prompts to policy-makers who should encourage the presence of institutional investors. Third, the policy-makers should also encourage the expansion of the stock market to enhance the protection of shareholders, reduce private control benefits and provide Italy the same opportunities as other common and civil law countries to collect risk capital, avoiding the abuse of debt. Originality/value The empirical results suggest that ownership concentration increases the degree of corporate debt, whereas institutional investors assume the disciplinary role of monitoring and controlling agency costs. The results provide evidence of both the entrenchment effect and the alignment-of-interests hypothesis and that the expropriation theory seems to prevail over the control and monitoring role.

scholarly journals Perception and Drivers of Financial Constraints for the Sustainable Development

2020 ◽  
Vol 12 (17) ◽  
pp. 7217
Author(s):  
Tamara Teplova ◽  
Tatiana Sokolova ◽  
Mariya Gubareva ◽  
Kristina Galenskaya ◽  
Andrey Teplov
Keyword(s):  
Sustainable Development ◽  
Financial Constraints ◽  
Institutional Environment ◽  
Academic Research ◽  
State Ownership ◽  
Policy Makers ◽  
The Sustainable Development ◽  
Debt Market ◽  
The Impact

Financial market imperfections constrain firms’ ability to obtain funds. This is especially true for the former communist bloc countries. However, the restrictions on access to financing and the attitudes of management in these geographies remain overlooked by academic research and represent an important obstacle on the roadmap to sustainable development. The objective of this paper is to fill this gap by analyzing the impact of ownership structure, institutional environment development, and debt market profile on the perception of financial constraints by the representatives of corporate top management from 28 countries of the former communist bloc. Our analysis spans over the period 2002–2013. We apply the probit and Heckman models to investigate nonlinear and multicast effects of the considered factors. We evidence that during the crisis and post-crisis periods, foreign ownership alleviates the restrictions on access to financial resources. We also discuss the role of state ownership. We find that the volume of local currency bond market has a nonlinear U-shape relationship. Our results are useful for policy makers focused on sustainable development of the former communist economies by means of improving access of businesses to financing.

scholarly journals State Ownership and Firm Performance: Evidence From the Chinese Listed Firms

2011 ◽  
Vol 2 (2) ◽  
pp. 72-90 ◽  
Author(s):  
Trien Le ◽  
Amon Chizema
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Transitional Economies ◽  
State Ownership ◽  
Institutional Arrangements ◽  
Policy Makers ◽  
Negatively Associated ◽  
Listed Firms ◽  
Low Levels

Based on a sample of Chinese listed firms, this paper seeks to understand the role of state ownership on firm performance (accounting-based returns) and firm value (market-based indicators). Results show that state ownership is positively associated with firm performance. In addition, state ownership has a moderating effect on the association between firm performance and firm value. At low levels of state ownership, firm performance is negatively associated with firm value. However, at high levels of state ownership, the association becomes positive. Drawing on signaling theory, the study helps to understand the role of state ownership in the association between firm performance and firm value, an area that has received minimum attention in research.Specifically, state ownership may be a strategic asset for Chinese listed firms boosting accounting returns but perceived differently by the market.Given the current levels of state ownership in many transitional economies, this study sheds light for policy makers on the effects of high or low levels of state ownership on firm performance and value. Moreover, the study may assist would-be investors who may contemplate investing in privatized SOEs, in China or other countries with similar institutional arrangements.

scholarly journals Socio-Economic Contribution of Donkey and Mule Rearing in Haryana (India) – A Review

2021 ◽  
pp. 198-203
Author(s):  
Ajmer Singh ◽  
Rajender Kumar ◽  
Sanjay Kumar ◽  
Yash Pal
Keyword(s):  
Animal Husbandry ◽  
Vital Role ◽  
The State ◽  
Policy Makers ◽  
Agrarian Economy ◽  
Load Carrying ◽  
Economic Contribution ◽  
Major Factors ◽  
Engine Power

Animal husbandry plays a vital role in growth of agrarian economy in Haryana and role of livestock is very important for livelihood in the state (Haryana). Equine (Equidae) is a major component of livestock having its four sub groups i.e. horse, pony, donkey and mule. Equine is integral part of animal husbandry as well as agriculture found worldwide and equine power is known equal to engine power. Donkey and mule are major parts of equine family and mainly reared for load carrying, cart pulling and are used as pack animals in Haryana. A great decline has been observed in donkey population during last few years in the state. As per census done by DADF (GOI) donkey population was 63000 in 1997, 8000 in 2003, 4838 in 2007, 2903 in 2012 and 800 in 2019 the state. Similarly decline was also observed in mule population and as per census done by DADF (GOI) mule population was 35000 in 1997, 14000 in 2003, 10600 in 2007, 9009 in 2012 and 2499 in 2019 in Haryana. Mechanization, ignorance of policy makers and social taboo are major factors responsible for decline of population of these animals in Haryana.

scholarly journals Minority shareholders vs. the state: the case of JSC “UKRNEFT”

2005 ◽  
Vol 2 (3) ◽  
pp. 106-111
Author(s):  
Alexander Kostyuk ◽  
Olena Kostyuk
Keyword(s):  
Ownership Structure ◽  
The State ◽  
Joint Stock Company ◽  
Corporate Ownership ◽  
Minority Shareholders ◽  
Stock Company ◽  
Asymmetry Of Information ◽  
Company Stock ◽  
Corporate Ownership Structure

The joint-stock company "Ukrneft" is a good example for understanding the role of asymmetry of information in the corporate governance. Corporate ownership structure is characterized by high enough concentration. The state is the largest stockholder, owning 50%+1 company stock, i.e. controlling block. Besides the state, there are some large shareholders in the structure of corporate ownership of the joint stock company "Ukrneft’". They are represented by Pryvatbank, Ukrsybbank and Wotford Groups. The consolidated shareholding of these shareholders is 41 % of voting shares. The remaining 9 % of shareholder equity belong to the rest minority shareholders

Hybrid governance and extraterritoriality: Understanding Singapore's state capitalism in the context of oil global production networks

2021 ◽  
pp. 0308518X2110481
Author(s):  
Neil McGregor ◽  
Neil M. Coe
Keyword(s):  
State Ownership ◽  
The State ◽  
Integrated Analysis ◽  
Production Network ◽  
Private Governance ◽  
Production Networks ◽  
Global Production Networks ◽  
State Capitalism ◽  
Hybrid Governance ◽  
Global Production Network

This paper explores the intersections and overlaps between state capitalism and global production networks. A key feature of the so-called new state capitalism is the combination of state ownership and corporatisation, which creates a system that can be characterised as a hybrid of public–private governance in both corporate and network terms. Moreover, the internationalisation of state hybrids adds an extraterritorial dimension to the state, which can influence the configuration and governance of global production networks. This paper develops a conceptual framework (H–E–N) that foregrounds the relationships between hybrid governance (H), extraterritoriality (E) and global production network configurations (N), thereby promoting an integrated analysis of the implications of the new state capitalism for global production networks. This framework is mobilised to explain how state capitalism in Singapore has influenced the development of the city-state's position in upstream, midstream and downstream oil global production networks over the 1959–2019 period. The study demonstrates that hybrid governance, as part of a wider strategy of state capitalism, has been critical in the development of Singapore's position in oil global production networks. The hybrid nature of the institutional forms associated with state ownership – for instance state-owned enterprises and sovereign wealth funds – goes beyond market facilitation to encompass active state participation in markets. Hybrid governance not only allows the state to influence domestic outcomes but – through the extraterritorial strategies of hybrid entities – can also influence global production network configurations beyond its borders.

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