Topic: Privatization and corporatization as endogenous choices in Chinese corporate reform
Presenter：Ming Liu, Department of Finance, Chinese University of Hong Kong |
Time: December 12, 2008（Friday）3：00—4：30 PM
Venue: Room 501, Jiageng Bld 2
Chair： Zhe Shen, assistant professor in finance, IFAS
Abstract：
We investigate the endogenous choice problem of Chinese state-owned enterprises in their decision on whether to corporatize or privatize. Corporatization differs from privatization in the Chinese context, as in the former case, the state remains as a large shareholder, and in the latter case, the state has little or no ownership. Using a panel of provincial statistics, we show that the larger the local employment pressure, the less likely we see privatization; the smaller the local fiscal pressure, the less likely we see privatization; the more corrupted the local business environment, the less likely we see privatization. Privatization is found to yield consistent efficiency gains over corporatization measured in terms of both employment and firm profitability. Our evidences are supportive of the theoretical framework of Boycko and Shleifer and Vishny (1996) where they model privatization as politicians' endogenous decision trading off eployment pressure against public fiscal interest.
Presenter Introduction：
Ming Liu is Associate Professor in Department of Finance, Chinese University of Hong Kong, Shatin. He got M. S. in Statistics and Ph.D.in Economics from Duke University and B. E. in Management Science from University of Science and Technology of China. His research Interests include investment and real estate finance.
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