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

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  • Rui Wang

    (Business School, Sichuan Normal University, Chengdu 610101, China
    School of Finance, Southwestern University of Finance and Economics, Chengdu 611130, 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)

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.

Suggested Citation

  • Rui Wang & Sheng Ma & Xinxin Xu & Pan Song, 2021. "Heterogeneous Shareholders’ Participation, COVID-19 Impact, and Innovation Decisions of State-Owned Firms: Evidence from China," Sustainability, MDPI, vol. 13(8), pages 1-22, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:8:p:4406-:d:536635
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    Cited by:

    1. Magdalena Gorzelany-Dziadkowiec, 2021. "COVID-19: Business Innovation Challenges," Sustainability, MDPI, vol. 13(20), pages 1-21, October.
    2. Yuying Gao & Shanyue Jin, 2022. "Corporate Nature, Financial Technology, and Corporate Innovation in China," Sustainability, MDPI, vol. 14(12), pages 1-22, June.

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