State-owned Enterprises, Excess Employment, and Firm Value: An Empirical Test Based on the Chinese Securities Market

Author: Zeng Qingsheng
Publisher:
Publish Date: 2006-11-01
Features: This book is a practical monograph on the management research of joint-stock companies. It is divided into several parts, including Introduction, Literature Review, Institutional Background, Theoretical Analysis and Research Design, Empirical Testing, and Overall Summary, analyzing relevant content. It aims to examine from a behavioral perspective the differences in agency problems between companies where the government, especially local governments, becomes the ultimate controller of listed companies and non-government-controlled companies. This book is suitable for reference and study by corporate management personnel.
This book is a practical monograph on the management research of joint-stock companies. It is divided into several parts, including Introduction, Literature Review, Institutional Background, Theoretical Analysis and Research Design, Empirical Testing, and Overall Summary, analyzing relevant content. It aims to examine from a behavioral perspective the differences in agency problems between companies where the government, especially local governments, becomes the ultimate controller of listed companies and non-government-controlled companies. This book is suitable for reference and study by corporate management personnel.
The research conclusions of this book indicate that state-owned enterprises may, on one hand, still face more government intervention (primarily from local governments), thus bearing a heavier social burden, while on the other hand, due to the absence of ultimate ownership, the internal agency problems of state-owned enterprises are more severe than those of non-state-owned enterprises. The research conclusions of this book have strong policy implications.
The author finds that even after listing and undergoing stronger external supervision, state-owned enterprises still bear a significantly heavier social burden than non-state-owned enterprises. Moreover, the more direct the form of state ownership, the heavier the social burden the company bears. This book provides direct empirical evidence for the diversification of state-owned equity and the indirect reform of government holdings in China's capital markets.