Ownership Structure of the Chinese Growth Enterprise Market

35 Pages Posted: 27 Feb 2013

See all articles by Peng Wang

Peng Wang

Hanken School of Economics

Date Written: December 1, 2012

Abstract

This paper provides a first look at the ownership structure in the Growth Enterprise Market (GEM) of China which is a new market launched in 2009. By analyzing the unique dataset, I find that 46% of firms in our sample are created through pyramids. I identify the status of ultimate owner of each firm, and find that the ultimate owners in the GEM are entrepreneurs while in the main board the state is the ultimate owners in most of companies. My results suggest that pyramidal ownership structures have a detrimental effect on firm performance.

Keywords: pyramid ownership structure, Growth Enterprise Market

JEL Classification: G32

Suggested Citation

Wang, Peng, Ownership Structure of the Chinese Growth Enterprise Market (December 1, 2012). Available at SSRN: https://ssrn.com/abstract=2223989 or http://dx.doi.org/10.2139/ssrn.2223989

Peng Wang (Contact Author)

Hanken School of Economics ( email )

P.O. Box 479
FI-00101 Helsinki, 00640
Finland

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