Private Firms Struggle with Indirect Listings, Widening Wealth Gap in China
Private-controlled listed companies in China are growing rapidly and are crucial for the country's capital market. A study compared ownership structures and performance between state-owned and non-state-owned companies, as well as direct and indirect listed private companies. The research found that the ownership structure influenced company governance and behavior, ultimately impacting company performance. Specifically, the agency cost of indirect listed companies is more severe than that of direct listed companies.