Does Group Affiliation Improve Firm Performance? The Case of Chinese State-Owned Firms

36 Pages Posted: 8 Feb 2008

See all articles by Huanjun Yu

Huanjun Yu

affiliation not provided to SSRN

Hans van Ees

University of Groningen

Robert Lensink

University of Groningen - Department of Economics, Econometrics and Finance; Wageningen UR - Development Economics Group

Abstract

This paper examines, for a sample of 657 state-owned Chinese firms in 2005, whether group affiliation improves performance. By using a simple OLS regression, as well as propensity score matching, treatment effects and two-step instrumental variable methods, we find a robust positive effect of group affiliation, which suggests that state-owned firms in China may benefit from joining a business group.

Keywords: China, Business groups, Evaluation methods, propensity score matching, treatment effects

JEL Classification: G34

Suggested Citation

Yu, Huanjun and van Ees, Hans and Lensink, Robert, Does Group Affiliation Improve Firm Performance? The Case of Chinese State-Owned Firms. Available at SSRN: https://ssrn.com/abstract=1091465 or http://dx.doi.org/10.2139/ssrn.1091465

Huanjun Yu (Contact Author)

affiliation not provided to SSRN

Hans Van Ees

University of Groningen ( email )

Department of Economics
P.O.Box 800
9700 AH Groningen
Netherlands

Robert Lensink

University of Groningen - Department of Economics, Econometrics and Finance ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

Wageningen UR - Development Economics Group ( email )

Hollandseweg 1
WAGENINGEN, 6706 KN
Netherlands

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