Foreign Ownership and Productivity in Chinese Newly Listed Firms: The Moderating Roles of Founder’s Human Capital and Social Ties

Da Teng; Chengchun Li; Sailesh Tanna

doi:10.1007/s10490-021-09758-w

Foreign Ownership and Productivity in Chinese Newly Listed Firms: The Moderating Roles of Founder’s Human Capital and Social Ties

Da Teng, Chengchun Li, Sailesh Tanna

School of Economics, Finance and Accounting

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

80 Downloads (Pure)

Abstract

This paper studies the effects of foreign ownership on firm-level productivity and examines the different moderating roles of the firm-founder’s human capital and social ties on the foreign ownership - productivity link. Leveraging a unique sample of 428 small and medium-sized firms listed on the Growth Enterprise Market in the Shenzhen Stock Exchange between 2009 and 2016, we find that the foreign ownership’s contribution to productivity is not linear and varies across different quantiles of the productivity distribution. Our findings also show that the founder’s education and foreign experience strengthen the foreign ownership - productivity link, while the founder’s political and managerial ties weaken it. Our results reveal the strategic importance of the founder and contribute to an improved understanding of why firms vary in their ability to enhance productivity in emerging economies.

Original language	English
Pages (from-to)	1125-1159
Number of pages	35
Journal	Asia Pacific Journal of Management
Volume	39
Early online date	26 Feb 2021
DOIs	https://doi.org/10.1007/s10490-021-09758-w
Publication status	Published - Sept 2022

Bibliographical note

The final publication is available at Springer via http://dx.doi.org/10.1007/s10490-021-09758-w

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Funder

National Natural Science Foundation of China [Grant no. 71972002], University Research Projects of Philosophy and Social Sciences in Jiangsu Province [Grant no. 2020SJA1210], and Pump Prime Funding of Coventry University.

Keywords

Foreign ownership
Founder
Human capital
Productivity
Social ties

ASJC Scopus subject areas

Business and International Management
Economics, Econometrics and Finance (miscellaneous)
Strategy and Management

Access to Document

10.1007/s10490-021-09758-w

Post-Print Accepted author manuscript, 1.46 MBLicence: CC BY-NC

Cite this

@article{d4485c3f8d5541e48a86f08d73c24505,

title = "Foreign Ownership and Productivity in Chinese Newly Listed Firms: The Moderating Roles of Founder{\textquoteright}s Human Capital and Social Ties",

abstract = "This paper studies the effects of foreign ownership on firm-level productivity and examines the different moderating roles of the firm-founder{\textquoteright}s human capital and social ties on the foreign ownership - productivity link. Leveraging a unique sample of 428 small and medium-sized firms listed on the Growth Enterprise Market in the Shenzhen Stock Exchange between 2009 and 2016, we find that the foreign ownership{\textquoteright}s contribution to productivity is not linear and varies across different quantiles of the productivity distribution. Our findings also show that the founder{\textquoteright}s education and foreign experience strengthen the foreign ownership - productivity link, while the founder{\textquoteright}s political and managerial ties weaken it. Our results reveal the strategic importance of the founder and contribute to an improved understanding of why firms vary in their ability to enhance productivity in emerging economies.",

keywords = "Foreign ownership, Founder, Human capital, Productivity, Social ties",

author = "Da Teng and Chengchun Li and Sailesh Tanna",

note = "The final publication is available at Springer via http://dx.doi.org/10.1007/s10490-021-09758-w Copyright {\textcopyright} and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. This document is the author{\textquoteright}s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it. ",

year = "2022",

month = sep,

doi = "10.1007/s10490-021-09758-w",

language = "English",

volume = "39",

pages = "1125--1159",

journal = "Asia Pacific Journal of Management",

issn = "0217-4561",

publisher = "Springer Verlag",

}

TY - JOUR

T1 - Foreign Ownership and Productivity in Chinese Newly Listed Firms

T2 - The Moderating Roles of Founder’s Human Capital and Social Ties

AU - Teng, Da

AU - Li, Chengchun

AU - Tanna, Sailesh

N1 - The final publication is available at Springer via http://dx.doi.org/10.1007/s10490-021-09758-w Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

PY - 2022/9

Y1 - 2022/9

N2 - This paper studies the effects of foreign ownership on firm-level productivity and examines the different moderating roles of the firm-founder’s human capital and social ties on the foreign ownership - productivity link. Leveraging a unique sample of 428 small and medium-sized firms listed on the Growth Enterprise Market in the Shenzhen Stock Exchange between 2009 and 2016, we find that the foreign ownership’s contribution to productivity is not linear and varies across different quantiles of the productivity distribution. Our findings also show that the founder’s education and foreign experience strengthen the foreign ownership - productivity link, while the founder’s political and managerial ties weaken it. Our results reveal the strategic importance of the founder and contribute to an improved understanding of why firms vary in their ability to enhance productivity in emerging economies.

AB - This paper studies the effects of foreign ownership on firm-level productivity and examines the different moderating roles of the firm-founder’s human capital and social ties on the foreign ownership - productivity link. Leveraging a unique sample of 428 small and medium-sized firms listed on the Growth Enterprise Market in the Shenzhen Stock Exchange between 2009 and 2016, we find that the foreign ownership’s contribution to productivity is not linear and varies across different quantiles of the productivity distribution. Our findings also show that the founder’s education and foreign experience strengthen the foreign ownership - productivity link, while the founder’s political and managerial ties weaken it. Our results reveal the strategic importance of the founder and contribute to an improved understanding of why firms vary in their ability to enhance productivity in emerging economies.

KW - Foreign ownership

KW - Founder

KW - Human capital

KW - Productivity

KW - Social ties

UR - http://www.scopus.com/inward/record.url?scp=85101776193&partnerID=8YFLogxK

U2 - 10.1007/s10490-021-09758-w

DO - 10.1007/s10490-021-09758-w

M3 - Article

SN - 0217-4561

VL - 39

SP - 1125

EP - 1159

JO - Asia Pacific Journal of Management

JF - Asia Pacific Journal of Management

ER -

Foreign Ownership and Productivity in Chinese Newly Listed Firms: The Moderating Roles of Founder’s Human Capital and Social Ties

Abstract

Bibliographical note

Funder

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this