IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v59y2023i4p1129-1139.html
   My bibliography  Save this article

Mixed Ownership Reform, Government Intervention, and Earnings Quality: Empirical Evidence from Pilot Enterprises in China

Author

Listed:
  • Zuguang Wu
  • Xiaoxuan Hou
  • Xianglong Meng
  • Meng Wang

Abstract

Using a sample of mixed ownership pilot enterprises in China from 2014 to 2018, we find that mixed ownership reform (MOR) can improve earnings quality. Thus, improving earnings quality (reducing market friction) is a specific mechanism through which MOR affects economic growth. We also find that the effect of government intervention on earnings quality varies across regions. In high-marketization regions, government intervention cater to the market and it has little or marginal effect on the effect of MOR on earnings quality. However, in low-marketization regions, government weakens the effect of MOR on earnings quality. MOR and reduced government intervention have complementary effects on earnings quality. MOR is not a one-size-fits-all formula, and it should be tailor-made according to local conditions (such as marketization levels).

Suggested Citation

  • Zuguang Wu & Xiaoxuan Hou & Xianglong Meng & Meng Wang, 2023. "Mixed Ownership Reform, Government Intervention, and Earnings Quality: Empirical Evidence from Pilot Enterprises in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(4), pages 1129-1139, March.
    • Handle: RePEc:mes:emfitr:v:59:y:2023:i:4:p:1129-1139
    DOI: 10.1080/1540496X.2022.2127313
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2022.2127313
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2022.2127313?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:59:y:2023:i:4:p:1129-1139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.