The Determinants of Steel Industry Performance in China

This study investigates the determinants of steel industry performance in China. Using the panel data of 26 listed companies for the period 2007 to 2017, along with various estimators, including the correlated random effects model (CRE), we find strong evidence that the firm’s stock operating, management quality, long term development strategy and external economic environment have significant influence on the stock performance. We further conduct a series of relative extended analyses about those determinants, and provide feasible suggestions to improve the performance of the steel industry. Given the deepening of the Chinese supply-side reform, this study fills the current research of the supply-side reform in the Chinese steel industry. Meanwhile, the study also provides different perspectives for understanding the determinants of the Chinese steel company’s stock performance, which has policy implications for the Chinese public decision-makers and private investors