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

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  • Chen, Ming
  • Chen, Chen

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.

Suggested Citation

  • Chen, Ming & Chen, Chen, 2023. "Financial constraints alleviation: Why does state-owned share reduction in China promote firm performance?," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323001976
    DOI: 10.1016/j.frl.2023.103824
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