Product market competition, state-ownership, corporate governance and firm performance

Li Liu, Wen Qu, Janto Haman

Research output: Contribution to journalArticleResearchpeer-review

Abstract

We examine the association between firm performance and product market competition (PMC) of Chinese firms listing on the Shanghai and Shenzhen stock exchanges. We find that higher PMC is associated with lower firm performance. We also find that good corporate governance practices moderate the negative effect of higher PMC on firm performance. The association between higher PMC and lower performance is weaker for firms owned by state owners relative to firms owned by non-state owners. Further, the moderation effect of the state-ownership on the association between higher PMC and lower performance is more pronounced for firms with good corporate governance practices relative to firms without good corporate governance practices.
Original languageEnglish
Pages (from-to)62-83
Number of pages22
JournalAsian Review of Accounting
Volume26
Issue number1
DOIs
Publication statusPublished - 2018

Keywords

  • Corporate Governance
  • State control
  • Competitive market
  • Firm performance

Cite this

@article{e18d506cd6184ebfb866c57f76316488,
title = "Product market competition, state-ownership, corporate governance and firm performance",
abstract = "We examine the association between firm performance and product market competition (PMC) of Chinese firms listing on the Shanghai and Shenzhen stock exchanges. We find that higher PMC is associated with lower firm performance. We also find that good corporate governance practices moderate the negative effect of higher PMC on firm performance. The association between higher PMC and lower performance is weaker for firms owned by state owners relative to firms owned by non-state owners. Further, the moderation effect of the state-ownership on the association between higher PMC and lower performance is more pronounced for firms with good corporate governance practices relative to firms without good corporate governance practices.",
keywords = "Corporate Governance, State control, Competitive market, Firm performance",
author = "Li Liu and Wen Qu and Janto Haman",
year = "2018",
doi = "10.1108/ARA-05-2017-0080",
language = "English",
volume = "26",
pages = "62--83",
journal = "Asian Review of Accounting",
issn = "1321-7348",
publisher = "Emerald",
number = "1",

}

Product market competition, state-ownership, corporate governance and firm performance. / Liu, Li; Qu, Wen; Haman, Janto.

In: Asian Review of Accounting, Vol. 26, No. 1, 2018, p. 62-83.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Product market competition, state-ownership, corporate governance and firm performance

AU - Liu, Li

AU - Qu, Wen

AU - Haman, Janto

PY - 2018

Y1 - 2018

N2 - We examine the association between firm performance and product market competition (PMC) of Chinese firms listing on the Shanghai and Shenzhen stock exchanges. We find that higher PMC is associated with lower firm performance. We also find that good corporate governance practices moderate the negative effect of higher PMC on firm performance. The association between higher PMC and lower performance is weaker for firms owned by state owners relative to firms owned by non-state owners. Further, the moderation effect of the state-ownership on the association between higher PMC and lower performance is more pronounced for firms with good corporate governance practices relative to firms without good corporate governance practices.

AB - We examine the association between firm performance and product market competition (PMC) of Chinese firms listing on the Shanghai and Shenzhen stock exchanges. We find that higher PMC is associated with lower firm performance. We also find that good corporate governance practices moderate the negative effect of higher PMC on firm performance. The association between higher PMC and lower performance is weaker for firms owned by state owners relative to firms owned by non-state owners. Further, the moderation effect of the state-ownership on the association between higher PMC and lower performance is more pronounced for firms with good corporate governance practices relative to firms without good corporate governance practices.

KW - Corporate Governance

KW - State control

KW - Competitive market

KW - Firm performance

U2 - 10.1108/ARA-05-2017-0080

DO - 10.1108/ARA-05-2017-0080

M3 - Article

VL - 26

SP - 62

EP - 83

JO - Asian Review of Accounting

JF - Asian Review of Accounting

SN - 1321-7348

IS - 1

ER -