Based on the first of its kind large-scale research on worldwide government ownership from 47 countries, the results show that government owners like to be the largest blockholders; if government is the largest blockholder, the size of its ownership is also quite big. Government ownership is mostly distributed in banks, infrastructure and public utility companies, and strategic manufacturing companies. While there are various theoretical arguments on the size and industry distribution of government ownership, this study provides first-ever empirical evidence. In sum, this paper contributes significantly and originally to our understanding on government ownership, and lay out further directions for future research on the complicated corporate governance issues of government ownership.
Gerschenkron, A. (1962) Economic Backwardness in Historical Perspective. Harvard University Press, Cambridge, MA
“Government sells remaining shares in Citigroup; investment to net $12 billion total profit for taxpayers“, The Washington Post, Retrieved April 15, 2017
Holderness, C. G. (2009) The Myth of Diffuse Ownership in the United States. Review of Financial Studies, Vol. 22, No. 4, pp. 1377-1408
Kay, J. A., & Silberston, Z. A. (1984) The new industrial policy - privatisation and competition, Midland Bank Review, Spring, 8-16.
Kornai, L. (1980) The economics of shortage. North-Holland, Amsterdam
La Porta, R., Florencio, L., & Shleifer, A. (1999) Corporate Ownership around the World. Journal of Finance, 54, 471-518
La Porta, R., Florencio, L., & Shleifer, A. (2002) Government Ownership of Banks, Journal of Finance, vol. 57(1), pages 265-301
Lewis, A., (1949) The Principals of Economic Planning. London, George Allen & Unwin Ltd.,
Li, D., Moshirian, F., Pham, P., & Zein, J. (2006) When Financial Institutions are Large Shareholder: The Role of Macro Corporate Governance Environments. Journal of Finance, Vol. LXI, No. 6, pp. 2975-3007, December
Liu, K. (2016) Government Block Holder Ownership, Sovereign Wealth Fund and Firm Performance. Journal of Advanced Studies in Finance, 7(2), pp.95-106.
Loderer, C., & Martin, K. (1997) Executive Stock Ownership and Performance: Tracking Faint Traces. Journal of Financial Economics, 45: 223-255
Maury, B., & Pajuste, A. (2005) Multiple Controlling Shareholders and Firm Value. Journal of Banking and Finance, 29, 1813-1834.
Maury, Be., (2006) Family Ownership and Firm Performance: Empirical Evidence from Western European Corporations. Journal of Corporate Finance 12, 321-341.
Megginson, W. L. (2005) The financial economics of privatization. Oxford University Press on Demand.
Megginson, W. L., & Netter, J. M. (2001) From State to Market: A Survey of Empirical Studies on Privatization. Journal of Economic Literature, Vol. 39, No. 2 (Jun), pp. 321-389
Megginson, W. L., Ullah, B., & Wei, Z. (2014) State ownership, soft-budget constraints, and cash holdings: Evidence from China’s privatized firms. Journal of Banking & Finance 48: 276-291.
Noll, R. G. (2000) Telecommunications Reform in Developing Countries, in Economic Policy Reform: The Second Stage. Anne O. Kreuger, ed. Chicago: U. Chicago Press.
Peng, M. W. & Jiang, Y. (2006) Family Ownership and Control in Large Firms: The Good, the Bad, the Irrelevant - and Why. William Davidson Institute Working Paper No. 840. Available online at SSRN: http://ssrn.com/abstract=938173