Title: The impact of institutional innovation on internal control: evidence from Chinese state-owned enterprises

Authors: Lei Ruan; Heng Liu

Addresses: School of Economics and Management, Northeast Normal University, Changchun, Jilin, 130117, China ' School of Economics and Management, Northeast Normal University, Changchun, Jilin, 130117, China

Abstract: Since mixed ownership reform is an important innovation of China's state-owned enterprise property rights system, whether the intervention of heterogeneous property rights can promote the reform of the state-owned enterprise governance system has attracted much attention from the outside world. To comprehensively evaluate the policy effects of China's state-owned enterprise property rights system innovation, we use an analysis of PSM-DID model to empirically test the impact of mixed ownership reform of state-owned enterprises on their internal control quality. Large sample data analysis shows that the internal control quality of state-owned enterprises that have undergone mixed ownership reform is significantly greater than that of state-owned enterprises that have not undergone mixed ownership reform. The research conclusion shows that heterogeneous property rights have played an active role in repairing the 'owner absence' and 'insider control' of state-owned enterprises, and the internal control system of state-owned enterprises has been substantially improved.

Keywords: institutional innovation; property right; state-owned enterprise; mixed ownership reform; internal control.

DOI: 10.1504/IJTM.2021.115264

International Journal of Technology Management, 2021 Vol.85 No.2/3/4, pp.255 - 273

Received: 21 Feb 2020
Accepted: 17 Nov 2020

Published online: 14 May 2021 *

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