Mixed-Ownership Reform and SOEs’ TFP : Evidence from Chinese Listed Company

By using the listed companies data, this paper investigates the impact of the ongoing mixed-ownership reform on the TFP of SOEs in China. Comparing with other SOEs, the TFP of pilot enterprises has been significantly improved through mixed-ownership reform. Further testing the changes in equity, we find such positive impact on TFP is positively correlated with the reduction of the state-owned shares. Policy effects are not heterogeneous between manufacturing and non-manufacturing sectors but more effectiveness for inland SOEs. Dynamic analysis show that the reform does not have anticipatory effect but with long-run positive impact on TFP, and such prolonged effect will increase with the passage of reform years. Finally, we do not find endogeneity between the pilot policy and the SOEs’ previous operating performance. The above conclusion is robust