State-Owned Capital Shareholding, Financing Constraints, and Private Firms' Investment Opportunities

Shixin Yang; Hang Shi

doi:10.63944/yms01.JFEMR

State-Owned Capital Shareholding, Financing Constraints, and Private Firms' Investment Opportunities

Shixin Yang (Author)

School of Economics and Management, Guangxi Normal University

Hang Shi (Author)

School of Economics and Management, Guangxi Normal University

DOI:https://doi.org/10.63944/yms01.JFEMR

Keywords:

State capital participation, investment opportunities, private enterprises, state-owned capital

Supporting Agencies:

the National Natural Science Foundation of China (Grant No.7236200), Research on the Formation Mechanism and Targeted Policy Responses to the Dilemma of State-owned Capital Operating Budget under Local Fiscal Pressure (Grant No.25BJY152), Research on the Incentive Effect and Mechanism of State-owned Capital Reverse Mixed Ownership Reform Boosting High-quality Development of Private Enterprises (Grant No.21BGL013)

Published

29-09-2026

Abstract: China's economy has now entered a stage of high-quality development, with the private economy serving as a vital pillar in driving growth and playing a key role in stabilizing investment. As mixed-ownership reform continues to deepen, the reform focus has gradually shifted from state-owned enterprise restructuring to two-way mixed-ownership reform involving both state-owned and private capital. Reverse mixed-ownership reform has emerged as an important instrument to help private firms overcome resource constraints. However, existing literature pays limited attention to the relationship between reverse mixed-ownership reform and private firms' investment opportunities. Using a sample of A-share listed private firms from 2014 to 2023, this paper empirically examines the impact of reverse mixed-ownership reform on private firms' investment opportunities. The findings indicate that state-owned capital participation enhances private firms' investment opportunities. Mechanism tests reveal that state-owned capital participation improves private firms' investment opportunities by alleviating financing constraints. Further analysis shows that the positive effect of state-owned capital participation on private firms' investment opportunities is more pronounced when private firms are located in regions with weaker legal institutional environments.

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State-Owned Capital Shareholding, Financing Constraints, and Private Firms' Investment Opportunities

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