The real effect of partial privatization on corporate innovation: Evidence from China’s split share structure reform
We examine the real effect of partial privatization on corporate innovation. To establish causality, we explore plausibly exogenous variation in the expectation of further partial privatization generated by China’s split share structure reform, which mandatorily converts non-tradable shares into fre...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
2020
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| Online Access: | http://hdl.handle.net/20.500.11937/89110 |
| _version_ | 1848765163457478656 |
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| author | Tan, Yongxian Tian, Xuan Zhang, Xinde Zhao, Hailong |
| author_facet | Tan, Yongxian Tian, Xuan Zhang, Xinde Zhao, Hailong |
| author_sort | Tan, Yongxian |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We examine the real effect of partial privatization on corporate innovation. To establish causality, we explore plausibly exogenous variation in the expectation of further partial privatization generated by China’s split share structure reform, which mandatorily converts non-tradable shares into freely tradable shares and opens up the gate to the further privatization of state-owned enterprises. We find that partial privatization prospects have a positive effect on corporate innovation. A better alignment of the interests of government agents with those of private shareholders and improved stock price informativeness appear to be two plausible underlying mechanisms. Our paper sheds new light on the real effects of partial privatization. |
| first_indexed | 2025-11-14T11:30:53Z |
| format | Journal Article |
| id | curtin-20.500.11937-89110 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:30:53Z |
| publishDate | 2020 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-891102022-08-22T07:59:36Z The real effect of partial privatization on corporate innovation: Evidence from China’s split share structure reform Tan, Yongxian Tian, Xuan Zhang, Xinde Zhao, Hailong We examine the real effect of partial privatization on corporate innovation. To establish causality, we explore plausibly exogenous variation in the expectation of further partial privatization generated by China’s split share structure reform, which mandatorily converts non-tradable shares into freely tradable shares and opens up the gate to the further privatization of state-owned enterprises. We find that partial privatization prospects have a positive effect on corporate innovation. A better alignment of the interests of government agents with those of private shareholders and improved stock price informativeness appear to be two plausible underlying mechanisms. Our paper sheds new light on the real effects of partial privatization. 2020 Journal Article http://hdl.handle.net/20.500.11937/89110 10.1016/j.jcorpfin.2020.101661 restricted |
| spellingShingle | Tan, Yongxian Tian, Xuan Zhang, Xinde Zhao, Hailong The real effect of partial privatization on corporate innovation: Evidence from China’s split share structure reform |
| title | The real effect of partial privatization on corporate innovation: Evidence from China’s split share structure reform |
| title_full | The real effect of partial privatization on corporate innovation: Evidence from China’s split share structure reform |
| title_fullStr | The real effect of partial privatization on corporate innovation: Evidence from China’s split share structure reform |
| title_full_unstemmed | The real effect of partial privatization on corporate innovation: Evidence from China’s split share structure reform |
| title_short | The real effect of partial privatization on corporate innovation: Evidence from China’s split share structure reform |
| title_sort | real effect of partial privatization on corporate innovation: evidence from china’s split share structure reform |
| url | http://hdl.handle.net/20.500.11937/89110 |