How state-owned equity participation promotes the digital transformation of nonstate-owned enterprises: Evidence from China

Zhe Chen, Yushan Cao and Kaicheng Liao

Finance Research Letters, 2024, vol. 59, issue C

Abstract: This paper empirically investigates the effect and influence mechanism of state-owned equity participation on digital transformation in Chinese listed nonstate-owned enterprises (non-SOEs). The estimates confirm the above effect. Mechanism analysis identifies two channels in such a relationship: the alleviation of financial constraints and the enhancement of corporate governance. Additional heterogeneity results demonstrate a more profound impact for those introducing strategic state-owned shareholders. Further analysis uncovers an optimal ratio for state capital, and the above effect can ultimately facilitate the high-quality development of non-SOEs.

Keywords: State-owned equity participation; Digital transformation; Financial constraints; Corporate governance; High-quality development (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:59:y:2024:i:c:s154461232301190x

DOI: 10.1016/j.frl.2023.104818

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