Property Rights Protection and Firm Diversification: Evidence from China
Firm diversifications are prevalent in many emerging economies in contrast to the practices in developed economies. A fundamental dif- ference between these two types of economies is the existence of sound economic institutions including in particular property rights protec- tion. Indeed it has been argued that diversified firms may thrive in situations of poor economic institutions, but much research is needed to substantiate this idea. In this paper, using a survey data set of private enterprises in China, we examine whether cross-region varia- tions in the degree of property rights protection affect the extent of firm diversification. We find that poorer property rights protection causes firms to be more diversified. We then explore several possible mechanisms through which property rights protection may affect firm diversification.
Firm Diversification Property Rights Protection Political Capital External Finance
Julan Du Yi Lu Zhigang Tao
Chinese University of Hong Kong University of Hong Kong
国际会议
广州
英文
1-31
2009-07-07（万方平台首次上网日期，不代表论文的发表时间）