Promote or inhibit: State-owned equity participation and family firms’ innovation investment
Targeting A-share listed family firms on the Shanghai and Shenzhen Stock Exchange, this study focuses on the special situation of state-owned equity participation in non-state-owned enterprises. Specifically, we explore the relationship between state-owned equity participation, intergenerational suc...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-04-01
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| Series: | Journal of Innovation & Knowledge |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X23000501 |
| _version_ | 1811155498542563328 |
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| author | Kanghong Li Yuyan Xiang Changbao Zhou Runhui Lin |
| author_facet | Kanghong Li Yuyan Xiang Changbao Zhou Runhui Lin |
| author_sort | Kanghong Li |
| collection | DOAJ |
| description | Targeting A-share listed family firms on the Shanghai and Shenzhen Stock Exchange, this study focuses on the special situation of state-owned equity participation in non-state-owned enterprises. Specifically, we explore the relationship between state-owned equity participation, intergenerational succession in family firms, and innovation investments. The results reveal a prominent “double-edged sword” effect of state-owned equity participation on family firms; that is, there is a reversed U-shaped relationship between shareholding proportion and innovation investment. To some extent, the intergenerational succession of family firms moderates the reversed U-shaped relationship. Moreover, the double-edged sword effect of state-owned equity is more prominent in family businesses that are created by the entrepreneur from scratch. Compared to existing research arguing for the linear relationship between state-owned equity participation and innovation investment by enterprises, we reveal the impact of the excessive supervision effect arising from the increase in state-owned equity holdings on family firms’ innovation. This study confirms the double-edged sword effect of state-owned equity participation in family firms and further explores the influence of intergenerational succession and the heterogeneity of family firms on such an effect. By revealing the double-edged sword effect of state-owned equity holdings, this study enriches the research on the participation of private enterprises in mixed-ownership reform. |
| first_indexed | 2024-04-10T04:35:19Z |
| format | Article |
| id | doaj.art-896742042b68458c8953a98d1a1d1568 |
| institution | Directory Open Access Journal |
| issn | 2444-569X |
| language | English |
| last_indexed | 2024-04-10T04:35:19Z |
| publishDate | 2023-04-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj.art-896742042b68458c8953a98d1a1d15682023-03-10T04:35:45ZengElsevierJournal of Innovation & Knowledge2444-569X2023-04-0182100354Promote or inhibit: State-owned equity participation and family firms’ innovation investmentKanghong Li0Yuyan Xiang1Changbao Zhou2Runhui Lin3Business School, Yangzhou University, Yangzhou 225127, China; Institute of Suzhong Development, Yangzhou 225009, China; Corresponding author at: Business School, Yangzhou University, Yangzhou 225127, China.Business School, Yangzhou University, Yangzhou 225127, ChinaBusiness School, Zhengzhou University of Aeronautics, Zhengzhou 450046, ChinaBusiness School, Nankai University, Tianjin 300071, ChinaTargeting A-share listed family firms on the Shanghai and Shenzhen Stock Exchange, this study focuses on the special situation of state-owned equity participation in non-state-owned enterprises. Specifically, we explore the relationship between state-owned equity participation, intergenerational succession in family firms, and innovation investments. The results reveal a prominent “double-edged sword” effect of state-owned equity participation on family firms; that is, there is a reversed U-shaped relationship between shareholding proportion and innovation investment. To some extent, the intergenerational succession of family firms moderates the reversed U-shaped relationship. Moreover, the double-edged sword effect of state-owned equity is more prominent in family businesses that are created by the entrepreneur from scratch. Compared to existing research arguing for the linear relationship between state-owned equity participation and innovation investment by enterprises, we reveal the impact of the excessive supervision effect arising from the increase in state-owned equity holdings on family firms’ innovation. This study confirms the double-edged sword effect of state-owned equity participation in family firms and further explores the influence of intergenerational succession and the heterogeneity of family firms on such an effect. By revealing the double-edged sword effect of state-owned equity holdings, this study enriches the research on the participation of private enterprises in mixed-ownership reform.http://www.sciencedirect.com/science/article/pii/S2444569X23000501G32L22O32P31 |
| spellingShingle | Kanghong Li Yuyan Xiang Changbao Zhou Runhui Lin Promote or inhibit: State-owned equity participation and family firms’ innovation investment Journal of Innovation & Knowledge G32 L22 O32 P31 |
| title | Promote or inhibit: State-owned equity participation and family firms’ innovation investment |
| title_full | Promote or inhibit: State-owned equity participation and family firms’ innovation investment |
| title_fullStr | Promote or inhibit: State-owned equity participation and family firms’ innovation investment |
| title_full_unstemmed | Promote or inhibit: State-owned equity participation and family firms’ innovation investment |
| title_short | Promote or inhibit: State-owned equity participation and family firms’ innovation investment |
| title_sort | promote or inhibit state owned equity participation and family firms innovation investment |
| topic | G32 L22 O32 P31 |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X23000501 |
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