school

UM E-Theses Collection (澳門大學電子學位論文庫)

check Full Text
Title

How does government ownership affect the financially distressed firms in China?

English Abstract

This paper investigates the investment behaviors of financially-distressed firms in China. Different from firms in western countries, many Chinese listed firms are ultimately owned and controlled by government, central or local. We expect that state-owned firms are less likely to cut investments than non-state-owned listed firms when facing financial distress. In other words, we predict that firms with closer relationships with the government, central or local, face lower cost of financial distress. Analyzing 195 financial distressed firms in the Chinese stock market from 2001 to 2007, I find that government-owned firms do face a lower cost of financial distress than non-government-owned firms. The difference in investment levels between the central government-owned firms and the local government-owned firms is statistically insignificant, however.

Issue date

2013

Author

Liu, Ying

Faculty

Faculty of Business Administration

Degree

M.B.A.

Subject

Government business enterprises -- China -- Finance

Corporate governance -- China

Banking and Finance -- Department of Finance and Business Economics

Supervisor

Tam, Hon Keung

Files In This Item

Full-text (Intranet)

Location
1/F Zone C
Library URL
991008706969706306