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Research article - Peer-reviewed, 2020

Effects of China's Collective Forestland Tenure Reform Policies on Forest Product Firm Values

Zhang, Tingting; Yao, Shunbo; Yu, Jinna; Abu Hatab, Assem; Liu, Zhen;

Abstract

China's collective forestland tenure reform has dramatically affected the business environment of domestic forest product firms. This study examines the impact of the said reform on the expected values of these firms, via the reaction of investors (as seen on the stock markets) towards the issuance of related policies. Based on signaling theory and the assumption that the Chinese stock markets are efficient in terms of work form, this study adopts an event study method and examines five policies during the 2003-2009 period. The numbers of forest product firms used in the examinations herein differ among the policies and range from 21 to 29. This study found that the policies have differentially affected the expected values of forest product firms and that the impact on firms lacking forestland holdings is generally more significant than that on firms that hold forestland. The findings of this study enhance our understanding of the effect of collective forestland tenure reform on the value of forest product firms; they also have implications on forest product firms as they work to adapt to the reform.

Keywords

forestland tenure reform; forestland ownership; event study; abnormal return; forest product firm

Published in

Land

2020, volume: 9, number: 4, article number: 127

Authors' information

Zhang, Tingting
Univ Sci and Technol Beijing
Yao, Shunbo
Northwest AandF Univ
Yu, Jinna
Guizhou Minzu Univ
Swedish University of Agricultural Sciences, Department of Economics
Arish University
Liu, Zhen
Nanjing Normal Univ

UKÄ Subject classification

Economics

Publication Identifiers

DOI: https://doi.org/10.3390/land9040127

URI (permanent link to this page)

https://res.slu.se/id/publ/105235