 Do error-tolerance and correction mechanisms enhance the performance of state-owned enterprises in China?Yuan Li, Yuyao Yi, Xiaofan Li and Yunqing Tao International Review of Financial Analysis, 2024, vol. 96, issue PB Abstract: This study investigates the impact of error-tolerance and correction mechanisms (ETCM) on the performance of state-owned enterprises (SOEs). We conduct difference-in-differences (DID) estimations and find that the implementation of this policy significantly improves SOEs' performance. Mechanism analysis shows that the ETCM can strengthen the innovation capacity and improve internal governance of SOEs. Heterogeneity analysis shows that our results are more pronounced in SOEs with lower levels of corporate management, lower risk preferences of managers, higher intense external market competition, non-Industrial corporate and eastern regions. We also find that the ETCM improves SOEs' total factor productivity (TFP). Overall, this study provides perspectives and evidence from ETCM for deepening the reform of SOEs. Keywords: Error-tolerance and correction mechanisms; SOEs' performance; Innovation capacity; Internal governance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:96:y:2024:i:pb:s105752192400588x DOI: 10.1016/j.irfa.2024.103656 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
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