@TechReport{iza:izadps:dp17985,
            	author={(Mavis), Christos Mavrovitis and Pal, Sarmistha},
            	title={Can Politics Tame the Market? Market Responses to Government Control of Fully and Partially Privatized Firms in China},
            	year={2025},
	month={Jul},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17985},
            	url={https://www.iza.org/publications/dp17985},
	abstract={This study examines factors influencing full (FP) versus partial (PP) privatization and how markets respond to government control in PP and FP firms. Exploiting China’s 2005 NTS reform as a natural experiment, we find that treated PP firms experienced significantly lower post-reform performance, driven by persistent private benefits of control, failure to adopt value-maximizing behavior, and unchanged liquidity and information asymmetry. In contrast,  FP firms eliminated all NTS, maximized value; showed higher stock market liquidity and lower information asymmetry, improved market performance; and gained market confidence in the post-reform period. These findings challenge the effectiveness of China's authoritarian approach to private sector development.},
	keywords={local government incentives;authoritarian central government;firm value maximization;full and partial privatization;non-tradable shares reform;difference-in-differences},
            }