The Performance Implication of Equity of State and Qualified Domestic Institutional Investor under Different Foreign Involvement

• Main Authors: An-An Shen, 沈安安
• Other Authors: Wei-Haw Pan
• Format: Others
• Language: en_US
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/19745835856256333978

碩士 === 國立雲林科技大學 === 企業管理系 === 103 === Since the economic reform in 1970s, it brings about the stream of privatization. At the same time, because of fierce competition in domestic market as well as the impetus of strategy from government, international expanding become an important strategic. This study applies panel data regression techniques to examine the relationship between ownership, including state equity and qualified domestic institutional investor, and firm performance on 5,170 firm-year observations of Chinese listed firms during 2004–2011. We then discuss the relationship between their foreign involvement and performance of firm. The analysis shows a U-shaped relationship between SE and firm performance and a U-shaped relationship between QDII and firm performance. The degree of foreign involvement is used as a moderator to test the previous two relationships. With higher degree of foreign involvement, there is a U-shaped relationship between state equity and performance while it shows negative relationship in lower degree of foreign involvement. Both higher and lower the degree of foreign involvement, there is a systematic U-shaped relationship between QDII and performance.