The effect of state capital injection on private firms’ performance

Evidence from Chinese industrial firms

Bibliographic Data

ID6045455
AuthorsYan Dong (0009-0008-5989-4201, Southwestern University of Finance and Economics), Peizhong Liu (0000-0001-5387-1457, Southwestern University of Finance and Economics, corresponding author)
Year2022
Volume2
Issue2
Pages85-97
Publication date2022-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueChina Economic Quarterly International (JOURNAL)
Journal identifiersISSN: 2666-9331 • E-ISSN: 2666-9331
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.ceqi.2022.05.001
OpenAlexW4280557791
LanguageEN
Citations received1
References cited15

Based on Chinese industrial firms’ data, this study found that state capital injection weakened the technological progress and management efficiency of private firms, which led to a reduction in enterprises’ total factor productivity. State capital injection also increased the labor cost and investment in fixed assets, and lowered the profitability of firms. Furthermore, the state capital did not have a significant negative impact on firms in technology-intensive and monopoly industries. This study has shed some lights on the reform of the state-owned assets management system and the development of a mixed ownership economy

Business · Economic growth · Economics · Fixed asset · Industrial organization · Labour economics · Market economy · Microeconomics · Monetary economics · Monopoly · Productivity · Profitability index · Total factor productivity · Corporate Finance and Governance · Corporate Taxation and Avoidance · State Capitalism and Financial Governance · Finance

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Open DOIOpen Access