Yifan He, Yu Du

Yifan He

30 June, 2024

Total factor productivity, Reform of state-owned capital investment and operation companies, Political connection.

The reform of state-owned capital investment and operation companies has achieved remarkable results since its first pilot in 2014. Previous research on this reform has mainly focused on how it affects corporate profitability, corporate governance level, and other areas, with insufficient research on how it affects total factor productivity. Therefore, this article conducts quasi natural experiments on state-owned enterprises listed on the A-share market from 12 to 22 years ago, and uses the DID model to explore the impact of reform on TFP. The results indicate that the total factor productivity level of enterprises participating in the reform pilot has been significantly improved. In terms of heterogeneity analysis, the article found that the reform has a more significant effect on improving TFP for enterprises controlled by investment and operation companies of the State-owned Assets Supervision and Administration Commission of the State Council than for enterprises controlled by investment and operation companies of the provincial State-owned Assets Supervision and Administration Commission; At the same time, for companies with no political affiliation between the chairman and executives of listed companies before the reform, the effect of the reform on improving TFP is more significant due to the easier separation of government and enterprises.  The research conclusion of the article enriches the research on the reform of state-owned capital investment and operation companies, and provides empirical evidence on how to improve enterprise TFP.

© 2024, the Authors. Published by ISCCAC

This is an open access article distributed under the CC BY-NC license