The Effects of Nonstate Shareholder on the Excess Perquisites: Evidence from Chinese Mixed Ownership Reform

Shang, Duo; Yuan, Dongliang; Li, Dehui; Fan, Libo

doi:10.1080/1540496x.2022.2083496

Cited by 8 publications

(8 citation statements)

References 27 publications

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“…As shown in Table 3, the minimum and maximum values of OMD are 1.4949 and 55.4597, respectively, indicating a significant difference in the level of the participation of non‐state‐owned capital among SOEs. This is generally consistent with the statistical results of the existing studies (Shang et al, 2022). The 1st quartile, median, and 3rd quartile of the STRATEGY are 15, 17, and 20, respectively, indicating that the number of SOEs adopting defender or prospector strategies is relatively small, similar to Fan and Chen (2022).…”

Section: Empirical Analysessupporting

confidence: 93%

“…Moreover, research perspectives are mostly based on the willingness of the government to delegate power or the willingness of non‐state‐owned capital to participate. In fact, SOEs and private enterprises are the main bodies of this reform (Li et al, 2022; Shang et al, 2022). Different business strategies can influence the financial behavior and decisions of a company, and it is the long‐term strategy of a company.…”

Section: Introductionmentioning

confidence: 99%

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Does business strategy of the state‐owned enterprise affect the participation of non‐state‐owned capital?: Empirical evidence from China

Zhao,

2023

Manage Decis Econ

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How to improve the operational efficiency of state‐owned enterprises (SOEs) is an important issue facing emerging economies or developing countries. This study investigates whether and how business strategies of SOEs affect the participation of non‐state‐owned capital using Chinese enterprises from 2008 to 2019. The study finds that there is a positive effect of aggressive corporate strategy on the motivation of private capital to participate in mixed ownership reform. Mechanism tests have shown that prospector strategy increases the reform motivation of SOEs by boosting investment in technological and knowledge capital and financing demand and also increase the willingness of private enterprises to participate by increasing SOEs' value. Further research is found that when the SOEs are more politically connected, in commercial competition industries, and located in regions with cleaner governments, the effect of business strategy on the participation of non‐state‐owned capital is more significant. This study not only enriches relevant research on the factors influencing mixed ownership reform at the micro level but also provides valuable experience and reference for economic reforms in emerging markets and developing countries.

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Section: Empirical Analysessupporting

confidence: 93%

Section: Introductionmentioning

confidence: 99%

Does business strategy of the state‐owned enterprise affect the participation of non‐state‐owned capital?: Empirical evidence from China

Zhao,

2023

Manage Decis Econ

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“…In order to control many other factors that may affect the strategic choice of SOEs, this paper uses the research of Zeng et al [50], Meng et al [4] and Shang et al [51] for reference to control from the following three aspects. In terms of enterprises' basic characteristics, six variables are selected: company size (SIZE), asset-liability ratio (LEV), profitability (TQ), cash flow ratio (CF), financial distress (Z_score), and tangible assets ratio (TA).…”

Section: Control Variablesmentioning

confidence: 99%

Mixed-ownership reform and strategic choice of Chinese state-owned enterprises

Yuan

Sun

et al. 2023

PLoS ONE

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The strategic choice of state-owned enterprises (SOEs) is crucial to the sustainable development of China’s economy. This paper explores the impact of mixed-ownership reform on the strategic choice of SOEs from the shareholder power and the board power. We find that the greater the diversity of mixed shareholders, the depth of mixed equity, the control of mixed equity, and the excess control of mixed equity, the higher the degree of mixed-ownership reform, and the more likely it is to promote SOEs to choose the prospector strategy. The mechanism test states that the impact of mixed-ownership reform on enterprise strategy is achieved through the balance effect between non-state-owned shareholders and state-owned controlling shareholders with the same power, and the synergy effect between different powers of non-state shareholders. Further research indicates that the mixed-ownership reform has a stronger driving effect on the prospector strategy in SOEs under strict external supervision, competitive industries, and local areas. This study clarifies the governance logic of non-state-owned shareholders on the strategic positioning of SOEs by dual control rights, and it provides empirical evidence for the formulation of enterprises’ market-oriented strategic objectives.

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“…Therefore, long-distance major customers can make use of information advantages to put forward more requirements for enterprises. In addition, major customers are important external stakeholders, and enterprises take seriously major customers who come from far away, resulting in significant perquisites such as accommodation, hospitality, and meeting expenses (Shang et al, 2022). Therefore, after the opening of high-speed rail, long-distance major customers may also seize the resources originally used for enterprise innovation.…”

Section: The Moderating Role Of High-speed Railmentioning

confidence: 99%

The effect of major customers' geographical distance on enterprise technology innovation: Evidence from China

et al. 2023

Self Cite

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Short‐distance major customers can capture information. Information is the key to bargaining. Therefore, short‐distance major customers undercut the price of innovation products. However, there is little research between major customers' distance and enterprise innovation. We find that short‐distance major customers are threats to enterprise innovation. IPDC and HSR weaken the relationship. Further research finds that the inhibitory effect of short‐distance major customers is more pronounced when the industry competition degree is high and enterprise market power is low. At distances of more than 1000 km, major customers are no longer threats. Distance is new to the literature about customer characteristics.

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The Effects of Nonstate Shareholder on the Excess Perquisites: Evidence from Chinese Mixed Ownership Reform

Cited by 8 publications

References 27 publications

Does business strategy of the state‐owned enterprise affect the participation of non‐state‐owned capital?: Empirical evidence from China

Does business strategy of the state‐owned enterprise affect the participation of non‐state‐owned capital?: Empirical evidence from China

Mixed-ownership reform and strategic choice of Chinese state-owned enterprises

The effect of major customers' geographical distance on enterprise technology innovation: Evidence from China

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