The premise for institutional investors to participate in firm innovation governance and promote firm innovation’s positive role is that institutional investors have specific decision-making power and are willing to participate in firm innovation governance. Therefore, the influencing factors of institutional investment shareholding stability are an important issue. This study investigates the impact of business connection, risk preference, policy factors, market factors, and firm factors on institutional investors’ shareholding stability using regressional analysis based on the samples of Chinese A-share listed firms from 2014 to 2017. The main findings show that institutional investors with higher business connections, risk preferences, and performance ranking intensity have poor shareholding stability. The reform has significant investment constraints on non-risk preference institutional investors but has insufficient investment constraints on risk preference institutional investors. The substitution and interaction between firm factors and the natural endowment of institutional investors occur alternately. This study’s results provide important policy implications to strengthen related business supervision between institutional investors and shareholding firms. The policy implications include relaxing the investment proportion restriction and establishing a market-oriented performance ranking and institutional investors’ evaluation mechanism.
The mixed ownership reform aims to improve the performance of firms, which is important for optimizing the overall economic layout and promoting firms to sustainable development. Therefore, an important issue is whether state ownership participation in private firms improves their performance in the context of the mixed ownership reform. This study investigates whether and how state ownership participation affects the performance of private firms using Chinese listed private firms from 2010 to 2020. The results of this study indicate that state ownership participation significantly eliminates the performance of private firms. Further results show that there is a U‐shaped relationship between the mixed ownership model and the performance of private firms. At the same time, firm transparency and financing constraints play a negative moderating role in the relationship between the mixed ownership model and the performance of private firms. The findings of this study enrich the literature on factors influencing the performance of private firms, provide empirical evidence for mixed ownership reforms in China, and further reveal the characteristics of Chinese accounting practices and the logical rules behind the operation of these practices.
The rent-seeking behavior of firms in economic society destroys the fair market order and hinders the sustainable development of the economy. In the context of the mixed-ownership reform, this study examines whether and how state ownership participation affects the rent-seeking behavior of private firms using Chinese-listed private firms from 2010 to 2019. The findings suggest that state ownership participation significantly eliminates the rent-seeking behavior of private firms. However, the eliminating effect of state ownership participation on private firms’ rent-seeking behavior is weakened by high economic policy uncertainty and government intervention where private firms operate. The findings of this study enrich the characteristics and influencing factors of rent-seeking behavior of private firms, expand the literature on Chinese mixed-ownership participation, provide empirical evidence that is inconsistent with Western theoretical predictions, construct a new theory based on practices with Chinese characteristics and further reveal the characteristics of Chinese accounting practices.
This study examines the impact of the 2018 “environmental protection fee to tax” policy on the charitable giving of polluting firms between 2015 and 2019 using a differences-in-differences method. This study found that implementing the “environmental protection fee to tax” policy reduced the level of charitable giving by polluters. The decline in charitable-giving levels was more pronounced among firms classified as heavy polluters, firms from the East of China, and non-state firms. The results suggest that the “environmental protection fee to tax” policy cannot only encourage firms to become more environmentally conscious but can also be used to determine the motivations behind firm charitable donations. The policy of changing environmental protection fees to taxes needs to be effectively implemented in China and strengthen the implementation effect.This study enriches the literature on environmental policies and firm charitable giving and provides empirical evidence on the economic consequences of the “environmental protection fee to tax” policy. It can also help polluters and regulators to understand the “environmental protection fee better to tax” policy and help the government to improve the external systems that regulate and guide corporate social responsibility.
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