首页 | 本学科首页   官方微博 | 高级检索  
     检索      


The effects of ownership concentration and corporate debt on corporate divestitures in Chinese listed firms
Authors:Jianfeng Wu  Dean Xu  Phillip H Phan
Institution:(1) Business School, The University of International Business and Economics, Beijing, China, 100029;(2) China Europe International Business School, 699 Hongfeng Road, Pudong, Shanghai, China, 201206;(3) Carey Business School, Johns Hopkins University, Baltimore, MD 21201, USA
Abstract:This study examines how ownership concentration and corporate debt impact corporate divestitures in China. Corporate divestitures reduce the asset base of a company and the opportunity for expropriation by majority shareholders. In emerging economies, weak legal institutions, combined with equity ownership concentration and high corporate debt, allow majority shareholders to avoid such disciplines. Consequently, the relationship between these governance mechanisms and divestiture activity exhibits a pattern that is different from that in developed economies. Using archival data collected from 1,210 Chinese listed companies during 1999–2003, we found that ownership concentration by the largest shareholder depressed corporate divestitures both in state-controlled and in non-state-controlled firms. The negative effect of corporate debt on divestitures only existed for state-controlled firms. Our finding provides corroborating evidence for principal–principal conflicts in emerging economies. It suggests that corporate strategy in these countries can be better explained by taking into account the unique agency problems that are prevalent in these economies.
Keywords:
本文献已被 SpringerLink 等数据库收录!
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号