The Dynamism of Partially State-Owned Enterprises in East Asia

70 Pages Posted: 19 Apr 2021

See all articles by Richard W. Carney

Richard W. Carney

China Europe International Business School (CEIBS)

Travers Child

China Europe International Business School (CEIBS)

Wai-Man Liu

Australian National University

Phong T. H. Ngo

Australian National University (ANU)

Date Written: April 15, 2021

Abstract

We examine the nature of state blockholding across publicly listed firms in East Asia by assembling a unique dataset spanning 16 years and 9 economies. Our newly compiled data identifies ultimate owners for each firm annually between 1997 and 2012, totaling 2,984 firm-year observations. Three findings stand out. First, large changes (>5%) to state blockholdings – both investments and divestments – are quite prevalent. Second, the identity of the largest shareholder frequently changes over time between state, family, and widely-held entities. Third, sovereign wealth funds are far more likely to acquire rather than sell large stakes in publicly traded firms.

Keywords: corporate ownership, state ownership, sovereign wealth funds, corporate pyramids

JEL Classification: G01, G34, G38, H11, H12

Suggested Citation

Carney, Richard W. and Child, Travers and Liu, Wai-Man and Ngo, Phong T. H., The Dynamism of Partially State-Owned Enterprises in East Asia (April 15, 2021). Journal of Corporate Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3827219

Richard W. Carney

China Europe International Business School (CEIBS) ( email )

Shanghai-Hongfeng Road
Shanghai 201206
Shanghai 201206
China

Travers Child

China Europe International Business School (CEIBS) ( email )

Shanghai-Hongfeng Road
Shanghai 201206
Shanghai 201206
China

Wai-Man Liu

Australian National University ( email )

Canberra, Australian Capital Territory 2601
Australia

HOME PAGE: http://https://www.cbe.anu.edu.au/about/staff-directory/?profile=Wai-Man%20(Raymond)-Liu

Phong T. H. Ngo (Contact Author)

Australian National University (ANU) ( email )

RSFAS, College of Business and Economics
Australian National University
Canberra, Australian Capital Territory 0200
Australia
+61 2 6125 1079 (Phone)

HOME PAGE: http://cbe.anu.edu.au/people/rsfas/phong-ngo/

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