Financial constraints alleviation: Why does state-owned share reduction in China promote firm performance?

Ming Chen and Chen Chen

Finance Research Letters, 2023, vol. 55, issue PA

Abstract: This study empirically examines whether state-owned share reduction in China influences the performance of neighboring non-state-owned enterprises (non-SOEs). Our estimates confirm a positive relationship between state-owned shares reduction of SOEs to the performance of non-SOEs and show the mediation effect of the financial constraints on this positive relationship. Therefore, the reduction of state-owned shares leads to financial constraints alleviation and then promotes the performance of neighboring non-SOEs.

Keywords: China; State shareholding; Firm performance; Financial constraints; Non-state-owned enterprises (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323001976
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323001976

DOI: 10.1016/j.frl.2023.103824

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().