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Title: A revisit on government ownership: Evidence from China after the secondary privatisation Authors:  Yan Zeng - Newcastle University Business School (United Kingdom) [presenting]
Abstract: The role of Government ownership on firm performance in Chinese listed companies before and after the secondary privatisation is discussed. The traditional debate on the helping or grabbing hand of Government fails to capture the dynamic nature of Governments behaviours. We propose a goal alignment hypothesis to reconcile these two paradoxical views and argue that Governments role varies with its strategic goals and policies over time. The main findings manifest that Chinese Government exerts its power in firms corresponding to its long-term principle as well as the time-varying operational polices. Furthermore we find that Government intervention largely props up firms after the secondary privatisation in the light of tremendously decreased ownership and improved governance, which provides a benchmark for politicians and business owners in the leading market economies to draw on, which is especially critical after the massive Government interference in these countries since 2008. In addition, a dynamic system GMM methods is applied to handle potential endogeneity problems so as to maximise the reliability of the results.