The influence of government affiliations on firm product innovation in a dynamic institutional environment: insights from China

Chun, Young-Soo; Bossink, Bart; Peverelli, Peter J.

doi:10.1108/ijoem-04-2021-0622

Cited by 1 publication

(1 citation statement)

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“…Existing studies on the mixed ownership reform of SOEs have mainly explored around firm performance (Dong et al, 2022;Iwasaki et al, 2022), innovation (Zhang et al, 2020;Cao et al, 2020;Yang et al, 2023), risk-taking (Khaw et al, 2016;Zhang et al, 2021) and governance effectiveness (Zhang et al, 2022). Existing research studies on corporate environmental behaviour focus on environmental policies such as environmental protection laws (Fang et al, 2021;Liu et al, 2021a), environmental regulation (Huang and Lei, 2021;Cui et al, 2022), stakeholders (Yu et al, 2022) and other factors to study corporate behaviours such as green innovation (Li et al, 2023) and social responsibility (Xue et al, 2022;Bardos et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

A study on the impact of the degree of mixed ownership reform of state-owned enterprises on corporate environmental response

Gao,

Wang,

2024

SAMPJ

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Purpose This study aims to explore the relationship between the degree of state-owned enterprises’ (SOEs) mixed reform and the environmental response of enterprises, against the background of actively promoting the reform of mixed ownership in China. Design/methodology/approach The study is conducted on a sample of A-share listed manufacturing companies in Shanghai and Shenzhen of China, investigated for the period 2015 to 2020. The baseline regression results are robust to a series of robustness and endogeneity tests. To deal with the issue of endogeneity, the technique of instrumental variable method has been applied. Findings The study confirms the U-shaped effect of the depth and restriction of mixed ownership on SOEs’ environmentally responsive behaviour in the manufacturing industry, especially for lower environmental regulation and higher level of risk-taking firms. The findings indicate that the government, shareholders and other stakeholders of enterprises should not simply consider that the mixed reform is directly promoting or reducing the environmental response behaviour of enterprises. Practical implications SOEs should improve their shareholding structures to undermine performance enhancement at the expense of the environment and increase environmentally beneficial behaviours. Regulators and governments should improve the institutional mechanism of environmental regulation and make efforts to promote corporate awareness of the environment. Social implications Although the adoption and implementation of environmentally friendly policies are costly, improved environmental response and other social responsibilities are helpful to corporate long-term growth and reputation and obtain more capital market attention. Therefore, firms would benefit from improving their environmental response to protect nature, as well as to enjoy the economic and social benefits of a better environmental response. Originality/value To the best of the authors’ knowledge, there is a lack of studies focussing on the environmental behaviour of SOEs of mixed reform. As the mixed reform in China has come to a climax phase in recent several years, SOEs of mixed reform is an ideal environment for research. The study focusses on manufacturing firms as these firms are more susceptible to contribute to environmental pollution, exploitation of natural resources and labour concerns.

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