Changes to the Ownership and Control of East Asian Corporations between 1996 and 2008: The Primacy of Politics

Abstract

We investigate changes to the ownership and control of East Asia’s largest companies in 1996 and 2008. Newly compiled data for 1,386 publicly traded companies at the end of 2008 is supplemented with existing data on 1,606 publicly traded companies at the end of 1996. Two main findings stand out. First, where status quo political arrangements persist, pre-existing ownership arrangements go unchanged or become more entrenched. Where major political changes occurred, corporate ownership would undergo substantial changes. Second, the state has become increasingly important as an owner of domestic firms as well as of foreign firms.

Keywords: Finance, Politics, East Asia

JEL Classification: G32, G34, G38