Silent actions: Digital transformation in private enterprises with state equity participation

Wentao Li, Xue Li, Lanying Peng and Chong Ning

Finance Research Letters, 2024, vol. 65, issue C

Abstract: We examine whether and how state equity participation affects digitalization efforts of privately-owned enterprises (POEs). Using a sample of Chinese-listed POEs, we find that state equity participation in POEs inhibits digitalization-related disclosures, while concurrently promoting digital innovations. This unveils a scenario where these enterprises are “walking more but talking less.” Further analyses indicate that concerns about heightened digitalization-related disclosures potentially harming economic interests lead POEs to reduce disclosures, mitigating proprietary costs, while state equity participation helps POEs obtain more government subsidies and bank loans. Our study provides valuable insights into how ownership heterogeneity shapes digitalization strategies of POEs.

Keywords: Corporate digitalization; State equity participation; Resource effect; Proprietary costs (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324005221
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:65:y:2024:i:c:s1544612324005221

DOI: 10.1016/j.frl.2024.105492

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 ().