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

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)
19 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 languageEnglish
Pages (from-to)(In-press)
JournalAsia Pacific Journal of Management
Volume(In-press)
Early online date26 Feb 2021
DOIs
Publication statusE-pub ahead of print - 26 Feb 2021

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

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