IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v96y2024ipbs105752192400588x.html
   My bibliography  Save this article

Do error-tolerance and correction mechanisms enhance the performance of state-owned enterprises in China?

Author

Listed:
  • Li, Yuan
  • Yi, Yuyao
  • Li, Xiaofan
  • Tao, Yunqing

Abstract

This study investigates the impact of error-tolerance and correction mechanisms (ETCM) on the performance of state-owned enterprises (SOEs). We conduct difference-in-differences (DID) estimations and find that the implementation of this policy significantly improves SOEs' performance. Mechanism analysis shows that the ETCM can strengthen the innovation capacity and improve internal governance of SOEs. Heterogeneity analysis shows that our results are more pronounced in SOEs with lower levels of corporate management, lower risk preferences of managers, higher intense external market competition, non-Industrial corporate and eastern regions. We also find that the ETCM improves SOEs' total factor productivity (TFP). Overall, this study provides perspectives and evidence from ETCM for deepening the reform of SOEs.

Suggested Citation

  • Li, Yuan & Yi, Yuyao & Li, Xiaofan & Tao, Yunqing, 2024. "Do error-tolerance and correction mechanisms enhance the performance of state-owned enterprises in China?," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    • Handle: RePEc:eee:finana:v:96:y:2024:i:pb:s105752192400588x
    DOI: 10.1016/j.irfa.2024.103656
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S105752192400588X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2024.103656?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

    Keywords

    Error-tolerance and correction mechanisms; SOEs' performance; Innovation capacity; Internal governance;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    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:eee:finana:v:96:y:2024:i:pb:s105752192400588x. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    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.