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Nonstate capital participation and innovation in state-owned enterprises: Scale, structure and quality

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  • Zhang, Shuang
  • Wang, Wenzhi
  • Zhou, Liying

Abstract

This paper measures enterprises’ innovation from three perspectives—the scale, structure and quality of innovation output—and investigates the innovation effect of mixed ownership reform (MOR). We find that MOR enhances the scale of innovation output, optimizes the innovation structure, and improves the innovation quality of state-owned enterprises (SOEs). It follows that the introduction of multiple ownership supervision and governance mechanisms by SOEs is conducive to promoting enterprise innovation. MOR can alleviate the principal–agent problem in SOEs, improve internal control quality, inhibit SOE financialization, and thus indirectly facilitate innovation.

Suggested Citation

  • Zhang, Shuang & Wang, Wenzhi & Zhou, Liying, 2024. "Nonstate capital participation and innovation in state-owned enterprises: Scale, structure and quality," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000692
    DOI: 10.1016/j.frl.2024.105039
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