How much does owner type matter for firm performance? Manufacturing firms in China 1998–2007

Authors

  • Fan Xia,

    1. Strategic Management Academic Area, ESC Rennes School of Business, Rennes Cedex, France
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  • Gordon Walker

    Corresponding author
    1. Department of Strategy and Entrepreneurship, Cox School of Business, Southern Methodist University, Dallas, Texas, U.S.A.
    • Correspondence to: Gordon Walker, Department of Strategy and Entrepreneurship, Cox School of Business, Southern Methodist University, Dallas, Texas, U.S.A. E-mail: gwalker@smu.edu

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Abstract

Who owns the firm (the state, private ownership, foreign investors) has long been an important topic for research on organizations. This paper estimates how much ownership contributes to firm performance, compared to other factors, including industry, region, firm size, year, and the firm itself. The data are on manufacturing firms in mainland China from 1998 to 2007. We find that the effect of owner type is significant and pervasive across regions and interacts with both geography and time, reflecting China's decentralized system and the strong trend in privatization. Copyright © 2014 John Wiley & Sons, Ltd.

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