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

Li Liu, Wen Qu, Janto Haman

Research output: Contribution to journalArticleResearchpeer-review


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
Issue number1
Publication statusPublished - 2018


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

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