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One novel mixed ownership reform and green innovation in private firms: Evidence from China

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  • Xu, Jingchang
  • Zhang, Huixuan
  • Wu, Wuqing

Abstract

A growing body of literature provides evidence that mixed-ownership reform in China greatly affects firm behavior. This study focuses on a novel mixed ownership reform of China's private firms, which we define as “reverse mixed-ownership reform”. We find that firms' green innovation level improves after the reform. Environmental awareness and substantive resources are identified as two underlying mechanisms. These effects are stronger when a firm is in an area with a lower level of market openness and when managerial shareholding is lower. We also find evidence that firms make a trade-off between green innovation and financial performance after the reform.

Suggested Citation

  • Xu, Jingchang & Zhang, Huixuan & Wu, Wuqing, 2023. "One novel mixed ownership reform and green innovation in private firms: Evidence from China," Emerging Markets Review, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:ememar:v:57:y:2023:i:c:s156601412300081x
    DOI: 10.1016/j.ememar.2023.101076
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    Cited by:

    1. 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).
    2. Che, Shuai & Tao, Miaomiao & Silva, Emilson & Sheng, Mingyue Selena & Zhao, Congyu & Wang, Jun, 2024. "Financial misallocation and green innovation efficiency: China's firm-level evidence," Energy Economics, Elsevier, vol. 136(C).
    3. Li, Wentao & Li, Xue & Peng, Lanying & Ning, Chong, 2024. "Silent actions: Digital transformation in private enterprises with state equity participation," Finance Research Letters, Elsevier, vol. 65(C).

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