Government control, diversification and corporate performance

Author

Wang, Tao ; Li, Xuefeng

Author_Institution

Sch. of Manage., Huazhong Univ. of Sci. & Technol., Wuhan, China

fYear

2009

fDate

16-19 Oct. 2009

Firstpage

1

Lastpage

4

Abstract

In this paper, we have analyzed the relationship among government control, diversification and corporate performance. The investigation has been performed using panel data procedure for a sample of 320 Chinese companies listed on the Shanghai stock exchange during the period from 2001 to 2006. We find that, diversification under government control has negative influence on firm performance, while the relationship between specialization under government control and performance is not statistically significant. This suggests that diversification under government control should decrease corporate performance.

Keywords

local government; statistical analysis; stock markets; Chinese company; Shanghai stock exchange; corporate performance; diversification strategy; government control; panel data procedure; statistical nonsignificance; Construction industry; Costs; Environmental economics; Government; Power generation economics; Power grids; Power supplies; Power transmission; Propagation losses; Substations;

fLanguage

English

Publisher

ieee

Conference_Titel

Bio-Inspired Computing, 2009. BIC-TA '09. Fourth International Conference on

Conference_Location

Beijing

Print_ISBN

978-1-4244-3866-2

Electronic_ISBN

978-1-4244-3867-9

Type

conf

DOI

10.1109/BICTA.2009.5338092

Filename

5338092