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This study explores the impact of state ownership on the performance of Chinese listed firms. This study uses annual data of 143, state-owned 1,235, private enterprises for a period of 2011 to 2015. We use Ordinary Least Square method to find whether firm profitability and ownership are associated with each other or not. The results of whole sample indicate that over all firm performance and state ownership are negatively associated in China. However, the negative connection between state ownership and financial performance changes as we run the regression across different sectors.

Does the Impact of State Ownership on Financial Performance of Firms Vary across different Sectors in China?