Outside blockholders and corporate performance: Evidence from China IPO firms

摘要

Based on Chinese firms initially publicly offering (IPO) in 2000 and 2001, we investigate the relationship between outside blockholders’ ownership and corporate performance. We find a significant cubic relationship between corporate performance and outside blockholders’ ownership, that is, with the increase of outside blockholders’ ownership, corporate performance slopes upward firstly, then downward, upward again. Our findings show that high ownership restriction degree is beneficial to corporate performance.