The Impact of Business Group Affiliation on Performance: Evidence
from China's 'National Champions'
Cambridge Journal of Economics, 34 (4):
617-631 (2010)Keywords: Firm; Firms; Subsidiaries; Subsidiary; Geographic Descriptors:
China; Geographic Region: Asia; Publication Type: Journal Article;
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use..Abstract
An important aspect of China's economic reforms has been an ambitious
policy to develop 100 or so large, internationally competitive business
groups. Very little is known about these national champion groups
or the benefits to subsidiary firms of belonging to them. This study,
building from insights and methods used in existing literature, examines
the performance of subsidiaries affiliated to China's national champion
groups. Our results find that they perform comparatively well. We
discuss possible reasons for this finding and comment more generally
on the important role that business groups now play in China's reform
and development.