“…Previous studies mostly highlight the positive impacts of the reform on various performance and governance metrics. Those positive impacts include alleviation of financial constraints (Chen et al, 2012), reduced tunneling of corporate resources (Liu and Tian, 2012), improved firm performance (Campello et al, 2014), increased output and employment at SOEs (Liao et al, 2014), reduced foreign share discounts (Hou and Lee, 2014), more aligned interests between management and shareholders (Chen et al, 2015), the increased value of excess cash (Lin et al, 2016) and more innovation (Tan et al, 2020). Among a few exceptions, Jiang et al (2018) find that blockholders enhance corporate investment efficiency, but the SSS reform causes some blockholders to leave, and therefore, reduces the investment efficiency.…”