Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

5-2025

Abstract

This thesis examines the determinants of pricing outcomes in state-owned asset transactions using a comprehensive dataset of 3,638 transactions from a major transitional economy. Contrary to conventional expectations, we find that fixed assets consistently receive less favorable pricing compared to equity assets, with significantly lower odds of trading above professional valuation and higher odds of trading below valuation. This pattern persists across multiple specifications and remains robust to propensity score matching approaches that address selection concerns. I further demonstrate that state-owned buyers secure significant advantages in transaction pricing, with dramatically lower odds of paying premiums over valuation or listing prices compared to private buyers. State-owned buyers also complete transactions more slowly, taking approximately 4.085 additional days on average. Geographical proximity between buyers and sellers shows more limited effects, with same-location transactions being less likely to trade below valuation but showing no significant advantage in securing above-valuation pricing. Competitive bidding emerges as one of the strongest predictors of premium pricing, highlighting the importance of transaction mechanisms. These findings challenge theoretical expectations about asset marketability and information asymmetry while supporting institutional perspectives on persistent state advantages in transitional economies. I discuss implications for asset valuation theory, institutional economics, and practical strategies for market participants navigating state asset transactions.

Keywords

State-owned asset transactions, Pricing outcomes, Fixed assets and equity assets, State-owned buyers, Transaction mechanisms.

Degree Awarded

SMU-SJTU Doctor of Business Administration

Discipline

Asian Studies | Finance and Financial Management

Supervisor(s)

FU, Fangjian

First Page

1

Last Page

121

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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