Impact of Shareholder Turnover on Social Responsibility: Evidence from Leshan Electric Power Market
How to balance economic profit and social responsibility has now become a significant problem especially for electric power commodity, which naturally has dual private and public property at the same time. Taking Leshan power market as an example, in this paper, we first analyze the market structure of Leshan electric power industry, putting forward that for state-owned company, conflict between economic and social benefits has been a prominent issue in Leshan where large number of population are scatted in the mountainous regions, leading it too expensive to build grid. Second, by listing the ownership changes of Leshan Electric Power Co. Ltd (LEP) from 1993-2008, a local public corporate, we find that from 2006, state-owned company began to invest in LEP, further became the largest shareholder in 2008. We suggest that this turnover in shareholder indicates the end of competition rivalry between state-owned and local companies and more important, the beginning of cooperation in Leshan power market, which will significantly influence the efficiency of social responsibility implementation. Through the local power company, like LEP, state-owned corporate can fulfill its corresponding social duty with lower cost and pursue its economic benefit at the same time. Our findings suggest that Leshan mode may provide some implications on how to balance the economic and social benefit for nature monopoly market.
Electric power market Shareholder turnover Social responsibility
WEI Xiaotian HE Zheng
School of Economics and Management, University of Electronic Science and Technology of China,Chengdu, P. R. China, 610054
国际会议
The 5th International Sympsium for Corporate Governance(第五届公司治理国际研讨会)
天津
英文
820-825
2009-09-01（万方平台首次上网日期，不代表论文的发表时间）