The dynamism of partially state-owned enterprises in East Asia

• Published in: Journal of corporate finance (Amsterdam, Netherlands) Netherlands), 2021-06, Vol.68, p.101951, Article 101951
• Main Authors: Carney, Richard W., Child, Travers B., Liu, Wai-Man, Ngo, Phong T.H.
• Format: Article
• Language: English
• Subjects: Corporate ownership; Corporate pyramids; Sovereign wealth funds; State ownership
• ISSN: 0929-1199; 1872-6313
• DOI: 10.1016/j.jcorpfin.2021.101951

We examine the nature of state blockholding across publicly listed firms in East Asia by assembling a unique dataset spanning 16 years and 9 economies. Our newly compiled data identifies ultimate owners for each firm annually between 1997 and 2012, totaling 2984 firm-year observations. Three findings stand out. First, large changes (>5%) to state blockholdings – both investments and divestments – are quite prevalent. Second, the identity of the largest shareholder frequently changes over time between state, family, and widely-held entities. Third, sovereign wealth funds are far more likely to acquire rather than sell large stakes in publicly traded firms. •Newly compiled data identifies ultimate owners for listed firms across East Asia between 1997 and 2012.•Large changes to state blockholdings – both investments and divestments – are quite prevalent.•The identity of the largest shareholder frequently changes over time between state, family, and widely-held entities.•Sovereign wealth funds are far more likely to acquire rather than sell large stakes in publicly traded firms.