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State-owned capital participation and customer concentration in private firms: Evidence from China

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  • Wang, Jie
  • Li, Wanli

Abstract

Using data from Chinese listed firms between 2007 and 2023, this study examines how state-owned capital participation affects the customer concentration of private firms. We find that state-owned capital participation helps reduce the customer concentration of private firms, which is more pronounced in lower-market-oriented regions and under higher economic policy uncertainty. Mechanism tests show that state-owned capital participation influences customer concentration by enhancing corporate reputation, strengthening financing capacity, increasing government procurement, and reducing information asymmetry. We also find that state-owned capital participation can strengthen market position, reduce operational risks, and enhance supply chain resilience for private firms. Overall, the study provides novel evidence on the determinants of customer concentration from an institutional perspective, highlighting the important role of ownership structure in shaping firms’ customer relationships.

Suggested Citation

  • Wang, Jie & Li, Wanli, 2026. "State-owned capital participation and customer concentration in private firms: Evidence from China," Economic Modelling, Elsevier, vol. 155(C).
    • Handle: RePEc:eee:ecmode:v:155:y:2026:i:c:s0264999325003979
    DOI: 10.1016/j.econmod.2025.107402
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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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