scholarly journals Ownership control and rights offerings in Chinese listed firms

2008 ◽  
Vol 5 (4) ◽  
pp. 481-491
Author(s):  
Yi-Hua Lin ◽  
Yenn-Ru Chen ◽  
Jeng-Ren Chiou
Keyword(s):  
Ownership Structure ◽  
Operating Performance ◽  
Listed Companies ◽  
Institutional Transformation ◽  
Listed Firms ◽  
Concentrated Ownership ◽  
Chinese Listed Companies ◽  
Large Shareholders ◽  
Rights Offering ◽  
The Government

Most Chinese listed companies were transformed from state-owned enterprises (SOEs). Institutional transformation results in an ownership structure that is characterized by highly concentrated ownership and state-owned shares, which may exert an influence on corporate finance. In China, listed companies rely heavily on equity for capital needs, but the government blockholders often subscribe to no shares or to partial shares; they tunnel seasoned offering equity (SEO) capital to their nonprofit units through related party transactions. Therefore, we examine large shareholders’ rights offering behavior and firms’ subsequent operating performance. The results reveal that with a higher ratio of state-owned shares, large shareholders tend to give up all preemptive rights for new shares of stock. Evidence confirms a predicted positive relation between large shareholders’ full rights subscription behavior and firms’ subsequent operating performance

Does Privatisation Affect Earnings Management of State-owned Enterprises in China?

2014 ◽  
Vol 06 (04) ◽  
pp. 26-38
Author(s):  
Chien-Hsun CHEN
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Listed Companies ◽  
Operational Performance ◽  
Important Indicator ◽  
Free Competition ◽  
Concentrated Ownership ◽  
Degree Of Control ◽  
The Government ◽  
Reported Earnings

Once privatised, SOEs are operating in a market with free competition; their reported earnings become an important indicator of the enterprise's operational performance. The degree of control that the state is able to exert over the company will diminish after privatisation. The concentrated ownership structure and the strong political and economic connections between the government and listed companies are the main causes of earnings management in China.

scholarly journals Ownership structure and firm performance: a longitudinal study in Malaysia

2016 ◽  
Vol 13 (2) ◽  
pp. 432-437
Author(s):  
Abdulkader Omer Abdulsamad ◽  
Wan Fauziah Wan Yusoff
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Performance Indicators ◽  
Secondary Data ◽  
Listed Companies ◽  
Annual Reports ◽  
Government Ownership ◽  
Concentrated Ownership ◽  
Earnings Per Share ◽  
The Government

Highly concentrated ownership structure is a common feature in most developing countries including Malaysia. Such feature contributed to a significant decline in many performance indicators during the Asian financial crisis 1997/98. The main purpose of this paper is to explore developments in ownership structure and firm performance of Malaysian listed companies and their impact on firm performance. A quantitative approach was adopted to collect secondary data from annual reports of 369 listed Malaysia companies that are exist over the period of 2003 to 2013. In this study ownership structure has been measured using three indicators; the government ownership, local nominee and foreign nominee. While return on asset (ROA) and earnings per share (EPS) were the two criteria used to measure firm performance. The results of the study revealed that there are not much changes in the ownership structure and firm performance in Malaysia over the period of 2002 to 2013. It can be concluded economic development of the country does not much influence the ownership structure of listed companies in Malaysia..

The effect of corporate social responsibility on earnings management and tax avoidance in Chinese listed companies

2019 ◽  
Vol 27 (4) ◽  
pp. 632-652 ◽  
Author(s):  
Haijing Liu ◽  
Hyun-Ah Lee
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Tax Avoidance ◽  
Listed Companies ◽  
Private Enterprises ◽  
Content Type ◽  
Listed Firms ◽  
Chinese Listed Companies ◽  
Corporate Social

Purpose This paper aims to verify the effect of corporate social responsibility (CSR) on Chinese listed firms’ earnings management and tax avoidance. Specifically, this study investigates whether government-guided CSR implementation indeed drives firms to behave in a responsible manner by constraining earnings management and tax avoidance. Design/methodology/approach The paper analyses a sample of Chinese listed companies that are confronted with the unique situation of CSR being developed at a rapid pace by government-led policy and regulation. The study further investigates whether the effect of CSR on earnings management and tax avoidance is different for state-owned and private enterprises by partitioning the sample into these two subgroups. Findings The findings of this study show that government-guided CSR could be effective in reducing the firms’ earnings management and tax avoidance, even though the effect is limited to state-owned enterprises. Originality/value This paper provides new evidence on the relation of CSR with earnings management and tax avoidance in the Chinese context and sheds light on the importance of differentiating between the state-owned and private enterprises when studying the corporate behaviors of Chinese firms.

scholarly journals The Impact of CSR and Financial Distress on Financial Performance—Evidence from Chinese Listed Companies of the Manufacturing Industry

2020 ◽  
Vol 12 (17) ◽  
pp. 6799 ◽  
Author(s):  
Liu Wu ◽  
Zhen Shao ◽  
Changhui Yang ◽  
Tao Ding ◽  
Wan Zhang
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Manufacturing Industry ◽  
Positive Impact ◽  
Listed Companies ◽  
Research Database ◽  
Listed Firms ◽  
Chinese Listed Companies ◽  
Corporate Social ◽  
The Impact

This paper explores the impact of corporate social responsibility (CSR) and financial distress on corporate financial performance (CFP) in Chinese listed companies of the manufacturing industry. Covering a total of 1445 manufacturing observations from 2013 to 2018 by matching the China Stock Market & Accounting Research Database (CSMAR) and Ranking CSR Ratings (RKS) database and regression models, we find that CSR has a significant positive impact on CFP, and the relationship is more pronounced for firms that are more stable. Further, the win-win relationship of CSR and CFP is also stronger in state-owned enterprises (SOEs). These empirical results suggest that enterprises should actively embrace CSR in response to the call of the country. At the same time, corporate stability should be increased to enhance the role of CSR in promoting CFP. We provide a quantitative analysis of the CSR, CFP, and financial distress of listed firms, and help to alleviate managers’ concern of CSR fulfillment and risk control.

scholarly journals Ownership structure and risk disclosure: a study of Malaysian listed companies

2008 ◽  
Vol 5 (4) ◽  
pp. 451-460
Author(s):  
Azlan Amran ◽  
Mohd Hassan Che Haat ◽  
Ahmad Rosli Abdul Manaf
Keyword(s):  
Ownership Structure ◽  
Agency Problem ◽  
Listed Companies ◽  
Risk Disclosure ◽  
Multiple Regressions ◽  
Concentrated Ownership ◽  
Disclosure Practice

This research focuses on the importance of ownership structure as a determinant of risk disclosure. It is expected to contribute to the literature particularly in the Malaysian context, where risk disclosure practice is in the infancy stage. This study uses multiple regressions in assessing the variability of the extent of risk disclosure. The overall results confirm that highly concentrated ownership would lead to high agency problem, which then leads to less disclosure. This implies that, to promote greater transparency in countries where many of the large listed companies are family-owned, more stringent laws that mandates adequate risk disclosure is clearly warranted. This would ensure that the needs of all stakeholders are properly met

scholarly journals Self-interest or win-win: Determinants of executive compensation in China

2013 ◽  
Vol 10 (2) ◽  
pp. 121-127
Author(s):  
Zhen Chen ◽  
Fei Guo
Keyword(s):  
Executive Compensation ◽  
Agency Theory ◽  
Corporate Performance ◽  
Listed Companies ◽  
Listed Firms ◽  
Chinese Listed Companies ◽  
Self Interest

This paper studies the determinants of executive compensation in listed firms in China between 2002 and 2005. There is significantly positive elasticity of compensation to scale. Moreover, corporate performance is positively related to the elasticity of compensation to scale. We find that both agency theory and managerialism hold true in Chinese listed companies. Compensation contract is the result of the game by stockholders and managers

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