Business, Management and Accounting
7 years ago

Private ownership boosts firm performance more than state ownership in competitive markets.

Does Private Ownership Always Outperform State Ownership? A Competitive Dynamics Explanation
Wei Yang, Klaus E. Meyer

Paper Summary

Private ownership is better than state ownership for firms to improve performance through aggressive behavior. Full ownership is also more effective than joint ventures in this regard. This was confirmed by a study on 106 firms in China.

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