Title :
Government control, diversification and corporate performance
Author :
Wang, Tao ; Li, Xuefeng
Author_Institution :
Sch. of Manage., Huazhong Univ. of Sci. & Technol., Wuhan, China
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;
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
DOI :
10.1109/BICTA.2009.5338092
