Responding to Financial Crisis: The Rise of State Ownership and Implications for Firm Performance Report as inadecuate




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Abstract

We examine changes to corporate ownership in nine East Asian countries following the 1997 Asian Financial Crisis. Countries with lower incomes and in which policy making involves greater transactions costs i.e., veto points have more firms with state ownership. Partial state ownership appears to be effective insurance against crisis. Firms with minority state ownership exhibit 5% annualized lower idiosyncratic volatility in the quarter of the Lehman Brothers collapse than firms with either no or dominant state ownership. Minority state-owned firms also enjoy a higher abnormal return of 3.7% and 6.1% in the two quarters following the collapse of Lehman Brothers.



Item Type: MPRA Paper -

Original Title: Responding to Financial Crisis: The Rise of State Ownership and Implications for Firm Performance-

Language: English-

Keywords: financial crisis, government ownership, veto players, insurance, corporate performance-

Subjects: H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of GovernmentG - Financial Economics > G3 - Corporate Finance and Governance > G38 - Government Policy and RegulationG - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate GovernanceG - Financial Economics > G1 - General Financial Markets > G10 - General-





Author: Carney, Richard W.

Source: https://mpra.ub.uni-muenchen.de/43600/







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