Do Share Issue Privatizations Really Improve Firm Performance in China

摘要: This paper argues that the documented post-share issue privatization (SIP) decline in profitability is not evidence per se China’s SIP program ineffective or unsuccessful. Instead, positive effect often outweighed by a negative listing effect. We employ triple difference approach to separate these two effects, and examine sample of 248 Chinese SIPs from 1999-2009 matched with otherwise comparable SOEs privately-owned firms. document since ROS privatelyowned firms tends after going public 2.6% their EBIT/Sales 3.8%. After adjusting for this effect, however, we show yields significantly improved (ROS EBIT/Sales), find result robust alternative specifications. Our study highlights need account analyzing performance improvements following share privatizations--which have accounted bulk listed companies market capitalization.