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Business Groups, Institutional Environments, and Firm Performance
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TitleBusiness Groups, Institutional Environments, and Firm Performance  
AuthorLiu Huilong,Wang Chengfang and Gong Qihui  
OrganizationBusiness School, University of International Business and Economics;School of Business, Remin University; Guanghua School of Management, Peking University;; 
Key WordsBusiness Groups; Institutional Environment; Firm Performance 
AbstractIn this paper, we use China industrial corporate data to investigate the effects of group structure on firm performance, and whether institutional environments can affect the relationship between group structure and firm performance. We find that the group enterprises’ performance is significantly worse than non-group enterprises’ when the institutional environment is poorer. Improvement of the institutional environment will reduce not only the damage of group structure on performance of the parent company, but also the other group members, and this effect is more pronounced in other group members. This study deepens our understandings of the relationship between group structure and firm performance, and has important value for development of national industrial policy.  
Serial NumberWP338 
  • Institute of Economics, Chinese Academy of Social Sciences
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