Heterogeneous Shareholders’ Participation, COVID-19 Impact, and Innovation Decisions of State-Owned Firms: Evidence from China

Rui Wang, Sheng Ma, Xinxin Xu and Pan Song
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Rui Wang: Business School, Sichuan Normal University, Chengdu 610101, China
Sheng Ma: Business School, Chengdu University, Chengdu 610106, China
Xinxin Xu: Business School, Chengdu University, Chengdu 610106, China
Pan Song: School of Economics and Management, Southwest Jiaotong University, Chengdu 610031, China

Sustainability, 2021, vol. 13, issue 8, 1-22

Abstract: Innovation ability has become an important factor affecting the global competitiveness and sustainable development of state-owned enterprises (SOEs) in China, particularly during the COVID-19 period. This study examined the association between heterogeneous shareholders and SOE innovation, in addition to the moderating impact of corporate governance characteristics and the COVID-19 pandemic on this association. Using data from Chinese A-share listed mixed ownership enterprises (MOEs), we found that the mixed ownership reform of SOEs positively affected firm innovation compared to other MOEs by reducing agency costs, indicating that the manager view channel was proven. We also found that heterogeneous shareholders resulted in more innovation output in state-owned holding mixed ownership enterprises (SHMOEs) with affiliated managers, in those audited by lower reputation accounting firms or that had a lower external marketization, or during the COVID-19 period. The implications of this study are of importance for improving heterogeneous shareholders’ active participation in the mixed ownership reform of SOEs.

Keywords: heterogeneous shareholders; COVID-19; corporate governance characteristics; state-owned holding mixed ownership enterprises (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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