Do state-owned enterprises prefer capital from private enterprises with better ESG performance? Evidence from China's mixed ownership reforms

Feng Wei and Lei Zhou

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: This study investigates whether ESG performance is a criterion for state-owned enterprises (SOEs) to introduce capital from private enterprises in mixed ownership reforms. Using a sample of A-share private listed companies in China and manually collecting the data of the Chinese private listed companies with ownership participation in SOEs during 2010–2020, we find that private enterprises’ ESG performance is positively associated with the possibility and number of their ownership participation in SOEs, which remains consistent after conducting several robustness tests. Moreover, the relationship between private enterprises’ ESG performance and their ownership participation in SOEs is more pronounced for firms with high media coverage and firms without political connections.

Keywords: Private enterprises; ESG performance; Mixed ownership reforms; Media coverage (search for similar items in EconPapers)
JEL-codes: G12 G30 G34 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324000977

DOI: 10.1016/j.frl.2024.105067

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