IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v93y2024ipbp1198-1211.html
   My bibliography  Save this article

The effect of privatization on corporate innovation: New evidence from China’s ownership-transfer-privatization

Author

Listed:
  • Shi, Yaya
  • Zhao, Ningru

Abstract

This paper investigates the effect of privatization on corporate innovation utilizing the SOEs’ ownership-transfer-privatization (OTP) in China. Adopting a multiple period difference-in-difference method, we find that privatization significantly reduces the quantity of privatized SOEs’ innovation while increases the quality of privatized SOEs’ innovation. Several robustness checks, which include alternative measures, parallel trends and placebo tests, and the dynamic effect of privatization, are performed to validate our findings. Moreover, we demonstrate that two mechanisms – outside government intervention and inside political connections – drive the identified effect of privatization. Our findings shed new light on the debate surrounding the effects of privatization on corporate innovation.

Suggested Citation

  • Shi, Yaya & Zhao, Ningru, 2024. "The effect of privatization on corporate innovation: New evidence from China’s ownership-transfer-privatization," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 1198-1211.
    • Handle: RePEc:eee:reveco:v:93:y:2024:i:pb:p:1198-1211
    DOI: 10.1016/j.iref.2024.05.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056024003162
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2024.05.018?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

    State-owned enterprises; Ownership-transfer-privatization; Patents; Difference-in-difference;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

    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:reveco:v:93:y:2024:i:pb:p:1198-1211. 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/620165 .

    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.