张田余China Research Framework.ppt

2014@SWUFE Organization Structure Who has the decision management rights? Where do the managers of the listed SOE come from? Parent or original SOE? Government? Who has the decision control rights? What is the board structure? Is there a separation of ownership and control? Are the interests of the residual claimants represented? 2014@SWUFE Organization Structure - continued Who are the residual claimants Who are the block shareholders besides the parent SOE? Who monitors the management of the parent SOE? For some listed SOEs, the state is the residual claimants and the shares are held by an asset management bureau What are the objectives of these owners? 2014@SWUFE Role of Government What is the role of the government? What is the role of the central government after decentralization? If the local government can decide which firm to be listed, will it continue to meddle with the firm’s business activities What are their incentives? If the local government monitors the parent SOE, what influence does it exert? Although SOEs are given ownership and decision rights, such rights, like many other property rights, are still not properly delineated Government control What’s the effect of partial privatization? To what extent the SOEs are privatized? Is state control relinquished? Who will get the control of relinquished state control? 2014@SWUFE Institutions and Organizational Structure: The Case of State-Owned Corporate Pyramids Joseph P.H. Fan T.J. Wong Tianyu Zhang Forthcoming in JLEO 2014@SWUFE What is pyramid? Changchai Company, Ltd. Changzhou Bureau of State Assets Management 66.67% Guangzhou Pearl River Industrial Development Co., Ltd. Guangzhou Bureau of State Asset Management Guangzhou Pearl River Industrial Group Co., Ltd. 61.51% 6.83% 100% Non-pyramid Structure # Pyramidal Layer =1 # Pyramidal Layer =2 Pyramid Structure 2014@SWUFE Research focus We propose an explanation for pyramids by state: separating firms from political interference Why inte