The Change of Performance of Chinese Large-sized Private Enterprises and Its Determinants (2004-2006)

Xiaoxuan Liu ; Shiyong Zhao

Research Fellow, Institute of Economics, Chinese Academy of Social Sciences, 2 Yuetan Beixiaojie, Xicheng District, Beijing 100836, People's Republic of China xxliu@cass.org.cn
Associate Research Fellow, Institute of Economics, Chinese Academy of Social Sciences, 2 Yuetan Beixiaojie, Xicheng District, Beijing 100836, People's Republic of China, Tel: +8610-6803-4420 zhaoshiyong@yahoo.com.cn

JEL Classification: F16, F12

Abstract

Using the data collected by All China Federation of Industry and Commerce, this paper studies the change of performance of Chinese large-sized private enterprises and its possible determinants. The study finds that the financing difficulty of private firms, due to Chinese government's control policy, is the major factor resulting in the worsening performance of these large private firms.

Keywords:

Large-sized private enterprises, Technical efficiency, Financing constraint

Acknowledgments

We thank All China Federation of Industry and Commerce for providing us with the data. Paper presented at the 15^th Seoul Journal of Economics International Symposium held at Seoul National University, Seoul, 23 October 2007.

References

All China Federation of Industry and Commerce (ACFIC). The Development Report of Non-State-Owned Economy in China 2005-2006. Social Sciences Academic Press, 2006 (in Chinese).
Chen, Ling, and Cao, Zhenghan, Institutions and Capability: 20 Years of Growth Analysis of Chinese Private Enterprises. Shanghai: Shanghai People’s Press, 2007.
Zhang, Weiying. Core Competence and Growth of the Firm. Beijing: Peking University Press, 2006.