Performance and Turnaround of Mixed-ownership Firms during Financial Crisis.

Ting REN, Yanlin ZHANG, Hongyan YANG

Research output: Other PublicationsOther ArticleResearch


We study the performance of mixed ownership firms during the 2008 financial crisis period in China. Adopting an across-crisis perspective, we evaluate the effectiveness of mixed ownership structure under different economic conditions with a special focus on the likelihood of firm performance decline and turnaround across the period. Using data of Chinese listed companies from 2005 to 2011, we found that, in terms of the effectiveness of state ownership, firstly, during the normal economic period, the firm performance is concavely related to the state ownership; however, during the extreme period (financial crisis period) this relationship turns into a positive one, that is, higher state- ownership shareholding corresponds to better firm performance. Secondly, firms with more state-owned shareholding are less likely to fall into a decline trend during the crisis, but it does not necessarily related to the higher chance of turnaround; instead, firms with mixed ownership structure have the largest likelihood of turnaround. Thirdly, besides the positive effect state ownership has imposed on overall firm performance, mixed ownership firms could benefit from the second largest shareholder when it functions as a balanced shareholder. Particularly, i) private- controlled firm with a state balanced shareholder and state- controlled firm with a foreign balanced shareholder outperformed firms without; ii) during the crisis, firms with balanced ownership structure had more chance of successful turnaround; iii) among the firms mixed with both state and private shareholders, those controlled by private owners outperformed those controlled by state. Based on the empirical findings, we discussed practical and policy implications regarding SOE reform in China.
Original languageEnglish
Number of pages1
Specialist publicationAcademy of Management Journal
Publication statusPublished - Aug 2017


  • Financial Crisis
  • Firm Performance
  • Mixed Ownership


Dive into the research topics of 'Performance and Turnaround of Mixed-ownership Firms during Financial Crisis.'. Together they form a unique fingerprint.

Cite this