Foreign Shareholders’ Social Responsibility, R&D Innovation, and International Competitiveness of Chinese SOEs

Yuying Zhou, Chu Lei and Alfredo Jiménez
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Yuying Zhou: School of Business English, Sichuan International Studies University, Chongqing 400013, China
Chu Lei: School of Business English, Sichuan International Studies University, Chongqing 400013, China
Alfredo Jiménez: Department of Management, KEDGE Business School, 31405 Talence, France

Sustainability, 2022, vol. 14, issue 3, 1-17

Abstract: Despite the increasing use of mixed ownership (domestic and foreign shareholders) in Chinese state-owned enterprises (SOEs), the role and performance of foreign ownership is still a controversial topic. In this paper we empirically examine the effects of foreign shareholders’ social responsibility on the international competitiveness of SOEs and the moderating effect of R&D innovation. Drawing on a sample of Chinese listed SOEs with international market operations over the period 2011–2019, we find empirical evidence supporting that foreign shareholders’ social responsibility is effective in enhancing the international competitiveness of Chinese SOEs. We also find that R&D innovation strengthens the effect between foreign shareholders’ social responsibility and enterprises’ international competitiveness. These findings are valid after controlling for robustness and endogeneity factors. Furthermore, we find that the promoting effect of foreign shareholders’ social responsibility on Chinese SOEs’ international competitiveness, as well as the moderating effect of R&D innovation, is more pronounced among Chinese local SOEs, business SOEs, and manufacturing SOEs. The research in this paper contributes to the current debate and deepens our understanding regarding the role and performance of foreign shareholders in the process of mixed-ownership reform.

Keywords: international competitiveness; foreign shareholders’ social responsibility; R&D innovation; Chinese SOEs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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