Business Groups, Institutional Environments, and Firm Performance
Read
DownLoad |
| Title | Business Groups, Institutional Environments, and Firm Performance
|
| Author | Liu Huilong，Wang Chengfang and Gong Qihui |
| Organization | Business School, University of International Business and Economics；School of Business, Remin University; Guanghua School of Management, Peking University |
| Email | lhlgsmer@126.com；wangchengfang@ruc.edu.cn；gongqihui@pku.edu.cn |
| Key Words | Business Groups; Institutional Environment; Firm Performance |
| Abstract | In 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 Number | WP338 |
| Time | 2012-08-29 |
|