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A Study on the Effect of Heterogeneous Equity Mix on the Performance of Mixed Ownership Firms

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  • Xuemei Liu
  • Rong Yang
  • Dongsheng Li

Abstract

This paper empirically tests the impact of heterogeneous equity mix on corporate performance using unbalanced dynamic panel data of China’s A-share main board market from 2008-2019 and comparatively analyzes the differences in the impact of heterogeneous equity mix on different holding companies’ performance and socioeconomic efficiency. The results show that a heterogeneous equity mix has no significant effect on the operating efficiency of enterprises, but has a significant positive effect on the operating efficiency and socioeconomic efficiency of enterprises. However, a heterogeneous equity mix does not promote the transformation of operation and governance mechanisms, resulting in no significant improvement in enterprise operating efficiency.

Suggested Citation

  • Xuemei Liu & Rong Yang & Dongsheng Li, 2023. "A Study on the Effect of Heterogeneous Equity Mix on the Performance of Mixed Ownership Firms," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 15(7), pages 1-23, July.
    • Handle: RePEc:ibn:ijefaa:v:15:y:2023:i:7:p:23
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    References listed on IDEAS

    as
    1. Zhang, Xiaoqian & Yu, Mingqiang & Chen, Gaoquan, 2020. "Does mixed-ownership reform improve SOEs' innovation? Evidence from state ownership," China Economic Review, Elsevier, vol. 61(C).
    2. Chen, Ruiyuan & El Ghoul, Sadok & Guedhami, Omrane & Wang, He, 2017. "Do state and foreign ownership affect investment efficiency? Evidence from privatizations," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 408-421.
    3. Shih‐Jye Wu & Yang‐Ming Chang & Hung‐Yi Chen, 2016. "Imported inputs and privatization in downstream mixed oligopoly with foreign ownership," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(3), pages 1179-1207, August.
    4. Attig, Najah & Guedhami, Omrane & Mishra, Dev, 2008. "Multiple large shareholders, control contests, and implied cost of equity," Journal of Corporate Finance, Elsevier, vol. 14(5), pages 721-737, December.
    5. Yingying Zhang Zhang & Sylvia Rohlfer, 2020. "A review of innovation and emerging markets," Working Papers EMS_2020_02, Research Institute, International University of Japan.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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