Microsoft AI & Research
14865 NE 36th Street
Redmond, WA 98052
Institutional Affiliation: Microsoft Research
NBER Working Papers and Publications
|January 2019||Can a Tiger Change Its Stripes? Reform of Chinese State-Owned Enterprises in the Penumbra of the State|
with Ann Harrison, Marshall Meyer, Linda Zhao, Minyuan Zhao: w25475
The majority of state-owned enterprises (SOEs) in China were privatized through ownership reforms over the last two decades. Using a comprehensive dataset of all medium and large enterprises in China between 1998 and 2013, we show that privatized SOEs continue to benefit from government support relative to private enterprises. Compared to private firms that were never state-owned, privatized SOEs are favored by low interest loans and government subsidies. These differences are more salient with the Chinese government’s trillion-dollar stimulus package introduced after the 2008 global financial crisis. Moreover, both SOEs and privatized SOEs significantly under-perform in profitability compared to private firms. Nevertheless there are clear improvements in performance post-privatization. ...
|January 2017||Ownership Concentration and Strategic Supply Reduction|
with Ulrich Doraszelski, Katja Seim, Michael Sinkinson: w23034
We explore the implications of ownership concentration for the recently-concluded incentive auction that re-purposed spectrum from broadcast TV to mobile broadband usage in the U.S. We document significant multi-license ownership of TV stations. We show that in the reverse auction, in which TV stations bid to relinquish their licenses, multi-license owners have an incentive to withhold some TV stations to drive up prices for their remaining TV stations. Using a large-scale valuation exercise, we find that this strategic supply reduction conservatively increases payouts to TV stations by between 7.0% and 20.7%.