Government Regulation And Firm Performance

Based on the ultimate controller data disclosed by the listed companies, we divide the listed companies detailed into five types: non-governmental control (i.e., private, township control and foreign capital control), county-level government control, city-level government control, provincial government control, as well as central government control. This paper,using the data on ultimate shareholders disclosed by the listed firms in 2004 to 2006, investigates the relationship between government regulation and firm performance. We find that, government regulation especially county level government control and city level government control has negative influence on firm Performance, but the improvement of institutional environment can mitigate this negative influence.