This article investigates the effect of the second step of privatization in China, which is full privatization through controlling rights transfer after share issue partial privatization. It finds that fully privatized firms perform worse than state-controlled enterprises. Expropriation by...

Focusing on employment issues, this paper investigates the impact of government control on state-owned enterprise's (SOE) excess employment, and hence on its performance and the compensation-based incentive mechanism. The results show that the excess employment in SOEs does not result in a...

Many studies show that country effects dominate in determining the stock return cross-sectional variations. After removing three potential distortions (domestic inflation rate, exchange rate and local risk-free interest rate), we find that the common practice of decomposing the nominal return...