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How state-owned equity participation promotes the digital transformation of nonstate-owned enterprises: Evidence from China

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  • Chen, Zhe
  • Cao, Yushan
  • Liao, Kaicheng

Abstract

This paper empirically investigates the effect and influence mechanism of state-owned equity participation on digital transformation in Chinese listed nonstate-owned enterprises (non-SOEs). The estimates confirm the above effect. Mechanism analysis identifies two channels in such a relationship: the alleviation of financial constraints and the enhancement of corporate governance. Additional heterogeneity results demonstrate a more profound impact for those introducing strategic state-owned shareholders. Further analysis uncovers an optimal ratio for state capital, and the above effect can ultimately facilitate the high-quality development of non-SOEs.

Suggested Citation

  • Chen, Zhe & Cao, Yushan & Liao, Kaicheng, 2024. "How state-owned equity participation promotes the digital transformation of nonstate-owned enterprises: Evidence from China," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s154461232301190x
    DOI: 10.1016/j.frl.2023.104818
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