Equity Participation Research Articles

State-owned equity participation and greenwashing behavior: evidence from Chinese private enterprises

PurposeCan state-owned equity participation inhibit private enterprises’ greenwashing behavior? If so, what are the mechanisms involved? Is there any difference in the impact of state-owned equity participation on private enterprises’ greenwashing behavior in different contexts? The answers to the above questions not only fill the existing research gaps but also provide new research ideas for greenwashing governance in developing countries.Design/methodology/approachUsing a sample of Chinese A-share listed private enterprises from 2011 to 2022, we examine the impact of state-owned equity participation on private enterprises’ greenwashing behavior.FindingsThe results suggest that state-owned equity participation can significantly inhibit private enterprises’ greenwashing behavior. Mechanism analysis shows that state-owned equity participation suppresses private enterprises’ greenwashing behavior by alleviating financing constraints through the resource effect and reducing managerial myopia through the governance effect. Moderating effect analysis indicates that media attention can strengthen the inhibitory effect of state-owned equity participation on private enterprises’ greenwashing behavior. Heterogeneity analysis shows that the inhibitory effect of state-owned equity participation on private enterprises’ greenwashing behavior is more significant in areas with a low degree of marketization and non-heavy-polluting industries.Originality/valueThe findings enrich the governance factors of private enterprises’ greenwashing conduct from the standpoint of diverse shareholders, assist developing countries in formulating more specific policy goals and provide important insights into global environmental governance practices.

State‐owned equity participation and corporate green innovation: evidence from Chinese private enterprises

This study examines the influence of state‐owned equity participation on green innovation in private enterprises. Using the data of China's A‐share private listed companies between 2009 and 2021, the paper finds that state‐owned equity participation has a positive impact on corporate green innovation and this finding remains consistent and dependable after conducting a series of robustness tests. In addition, this paper also uncovers that the impact of state‐owned equity participation on corporate green innovation differed across regions, industries, and external corporate governance. The results show that the incentive impact of state‐owned equity participation on green innovation is more pronounced in private enterprises with higher levels of intellectual property protection in the region where they are located, belonging to high‐tech industries and with higher media attention. Further mechanism analysis reveals that state‐owned equity participation enhances corporate green innovation by improving the fulfilment of corporate environmental responsibility and alleviating corporate financing constraints. Overall, this study enriches the research of green innovation influencing factors from the perspective of minority state‐owned equity and can help to inspire governments to make full use of state‐owned equity to promote the green transformation of private enterprises, thus contributing to the sustainable development of the global economy.

The effect of state-owned equity participation on tax burdens of non-state-owned enterprises: evidence from China

ABSTRACT This paper examines the effect of state-owned equity participation on the tax burdens of non-state-owned enterprises. Using Chinese-listed non-SOEs from 2009 to 2022 as the sample, we find that the participation of state-owned equity in non-SOEs significantly reduces tax burdens. This effect is more pronounced in firms with local state-owned shareholders, higher involvement of state-owned equity participation, and directors appointed by state-owned shareholders. Increasing tax incentives and weaker tax enforcement are two potential channels. Our study provides empirical evidence for understanding how the participation of state-owned equity in non-SOEs shapes corporate tax burdens through the political resource effect.

Diabetes Centers’ Participation in the T1D Exchange Quality Improvement Collaborative Advances Health Equity and Clinical Outcomes

As the learning health network known as the T1D Exchange Quality Improvement Collaborative (T1DX-QI) has expanded on a significant scale to provide care for more than 120,000 people since its inception in 2016, assessing the quality improvement (QI) culture and monitoring clinical outcome improvements of participating centers has become vital to understanding the network’s progress and success. Centers participating in the T1DX-QI complete regular QI culture self-assessments to quantify four evidence-based areas of culture: QI team structure, QI foundation, QI capacity, and QI success. This study builds on a previous baseline analysis to demonstrate self-reported improvements in T1DX-QI centers’ QI culture from 2021 to 2022 and summarizes QI successes experienced by participating centers.

Horizontal and vertical foreign direct investment linkages, absorptive capacity and domestic investment: evidence from Indonesian plant-level data

PurposeThis study examines the effect of horizontal and vertical foreign direct investment (FDI) linkages on the investment decisions of domestic plants. It explores this link for plants in a developing country, where the dynamics of FDI spillovers on domestic investment choices are distinct from those in developed countries. It also adds to the literature by examining the role the absorptive capacity of plants plays in this nexus, enriching our understanding of the interaction between FDI and the investment choices of domestic plants and providing insights for policymakers and managers seeking to maximize the positive effects of FDI spillovers.Design/methodology/approachThis study specifies the dynamic investment equation using the Euler and Q models. This equation is estimated using the first-difference and system generalized method of moments GMM estimators, which allow us to address persistency, endogeneity and unobserved plant-specific effects. FDI exposure proxy, calculated by weighing the FDI engagement variable by firm size, captures the strength of foreign equity participation in an industry and time. Input–output (IO) tables are used to calculate the proxies for horizontal and vertical (backward and forward) FDI. Total factor productivity is calculated using a method advocated by Olley and Pakes (1996) that allows us to control for selection and simultaneity.FindingsWe find that FDI inflows into both the domestic plants’ own industry and the input-supplying industry significantly boost the capital accumulation of the average domestic plants. Differentiating plants based on their absorptive capacities reveals that the presence of foreign firms significantly increases capital deepening for domestic plants with high absorptive capacity within their own industry (horizontal linkage) and in industries that supply inputs to the FDI-exposed industry (backward linkage). However, it leads to a decrease in capital deepening for high absorptive capacity domestic plants in industries using inputs produced by the industry exposed to FDI (forward linkage).Research limitations/implicationsThese findings have implications for policymakers and managers who aim to design incentives to maximize the positive spillover effect of horizontal and vertical FDI linkages on the capital deepening of domestic plants. Exploring additional mechanisms that could play a role in this nexus, separately for plants in different industries (such as the industries in which the country has a comparative advantage), may be fruitful.Originality/valueTo our knowledge, the relationship between the investment behavior of the domestic plants and FDI linkages has not been examined for a developing country. It is useful to explore this link in developing countries, as the investment choices of plants in these nations may be impacted differently by FDI spillovers than those in advanced nations. This study further contributes to the literature by investigating whether the plants’ absorptive capacity affects the nexus between FDI linkages and investment decisions of the domestic plants. The findings are valuable for policymakers and managers who aim to increase plants’ capital accumulation in developing countries.

Impact of State‐Owned Equity Participation on the Risk‐Taking Capacity of Private Enterprises in China: Insights From a Quasinatural Experiment

ABSTRACTResearch Question/IssueThis study rigorously explores the impact of state‐owned equity participation on the risk‐taking capacity of private enterprises following the introduction of China's Guiding Opinions on Deepening the Reform of State‐Owned Enterprises, which is considered a quasinatural experiment.Research Findings/InsightsState‐owned equity involvement significantly enhances private firms' risk‐taking capacity by improving resource access and reducing the constraints caused by limited resources and emerging legal systems. By analyzing A‐share private listed companies from 2009 to 2019 using a difference‐in‐difference approach, we find that firms with postpolicy state equity participation exhibit greater risk‐taking than those without. Firms that quickly integrate state capital postpolicy demonstrate heightened risk‐taking capabilities. These outcomes are robust even after extensive validation.Theoretical/Academic ImplicationsOur findings suggest that state‐owned shareholders play a significant role in augmenting private firms' risk‐taking through enhanced governance and supervisory mechanisms. This effect is mediated by increased innovation investments and the alleviation of financing constraints, emphasizing the nuanced role of state capital in private enterprise dynamics. This study underscores the positive impact of state equity participation, particularly among smaller and less‐marketized firms.Practitioner/Policy ImplicationsThis study offers a strategic direction for policymakers to reinforce a resilient and dynamic private sector through state capital engagement. Our study contributes to the understanding of the strategic implications of state‐owned enterprise participation in the private sector, offering evidence of its positive effects on risk‐taking capacity, which are vital for policy formulation and corporate governance enhancement.

Can state-owned equity participation improve a company’s environmental, social and governance performance? Evidence collected from China

Can state-owned equity participation improve a company’s environmental, social and governance performance? Evidence collected from China

Exploring the Impact of Private Equity Investment on Corporate Performance: A Case Study Pharmablock

Reasonable use of private equity investment not only effectively solves the problem of corporate funds, but also rapidly enhances the expansion of enterprises; Equity participation in enterprise management and decision-making can also make the development of enterprises more scientific and efficient. However, private equity investment also has the attribute of a "double-edged sword", such as excessive participation in internal business operations and the timing of exiting equity, which greatly affect the decision-making direction and debt stability of enterprises. This article takes Nanjing Pharmablock Co., Ltd., hereinafter referred to as "Pharmablock", as an example. By interpreting the process of private equity investment and investment, it studies the changes in the company's financial indicators such as profitability, debt repayment ability, and development ability, interprets the impact of private equity investment on enterprises, and ultimately identifies relevant issues and proposes corresponding suggestions.

Peran Perguruan Tinggi Keagamaan Islam (PTKIS) Dalam Pendidikan Perspektif Gender Menuju Indonesia Emas 2045

This paper reviews the role of Islamic Higher Education Institutions (HEIs) in gender perspective education as a key component towards Indonesia Emas 2024. Gender education involves an understanding of gender roles and human rights. HEIs have a responsibility to integrate religious values with gender education, shaping leaders who are aware of gender equality, and able to address complex social challenges. HEIs can play a major role in addressing this. By understanding the concept of gender education, integrating it in the curriculum, and involving lecturers in the delivery of gender materials, PTKIS can create an inclusive and civilised educational environment. Through gender inclusivity policies, prevention of gender-based violence, and active student participation in gender equality, PTKIS has the potential to shape a more inclusive, just, and competitive society, in accordance with the vision of Indonesia Emas 2024 that reflects the values of justice, equality, and sustainable progress.

Analysis Of The State Financial Losses To Subsidiaries Of State-Owned Enterprises In Terms Of Business Judgment Rules

The recovery of financial losses suffered by subsidiaries should prioritize recovery efforts that have a non-punitive nature or without punishing a certain person who is considered responsible for the management of BUMN subsidiaries unless there is intentional unlawful conduct and there are elements of criminal acts in it. In accordance with the principle of business judgment rule, the directors can be exempted, because the directors are considered to have made business decisions in accordance with good faith. In this research, the author uses a descriptive analytical research method, because the author will describe or provide an overview of the object under study through the data collected. The form of research used in this writing is normative legal research, because this research uses legislation and court decisions and also legal norms that exist in society. Researchers also collect data in the form of decisions from the corruption court on corruption cases that harm state finances. Losses arising in subsidiaries of SOEs whose capital is not sourced from the state budget or is not equity participation of SOEs and does not receive or use state facilities, are not included in the State's losses. the role of the business judgment rule if the person commits acts of criminal acts of corruption not due to encouragement or coercion and/or business decisions that are not based on prudence from the directors, the directors will be free from legal liability.

Contextual factors influencing voluntary organizations’ inclusiveness and individual participation in leisure activities: The Case of Norway

ABSTRACT While research on participatory inequalities in organized leisure has mainly focused on individual resources and contextual factors, studies linking the individual, organizational and contextual levels are lacking. This study remedies this by investigating the degree to which contextual, organizational and individual factors enhance or inhibit participation in membership-based voluntary leisure organizations among children and adolescents in Norway. We studied the individual, organizational and contextual factors by examining how these factors affect participation across municipalities. Our analyses based on individual, organizational, and municipal data investigate, using a mixed-effects approach, the extent to which organizational resources, organizational inclusiveness, and local public policy are associated with increased participation in leisure activities. Our findings show that contextual factors have little direct explanatory power but moderate individual and organizational characteristics while public policies addressing the supply of leisure activities are at best ineffective and should be aimed to a greater extent at reducing socio-economic inequalities at the individual level.

Managing healthcare innovation activities in Kazakhstan for optimal effectiveness

ABSTRACT The purpose of the article is to substantiate the theoretical, methodological, and conceptual foundations for managing innovative activities in the healthcare system of the Republic of Kazakhstan and develop recommendations aimed at improving its effectiveness in modern conditions. This study employs a mixed-method approach, integrating retrospective analysis, statistical evaluation, and economic analysis to examine trends and performance in healthcare innovation within Kazakhstan. It utilizes dynamic and structural analysis to assess innovation effectiveness and identifies key factors influencing innovative activity through equity participation and ranking methods, underpinning recommendations for improved management practices. This article critically concludes that healthcare innovation in Kazakhstan must address the low effectiveness of current innovative activities, hindered primarily by insufficient demand and funding constraints. The study underscores the essential role of a robust management mechanism focused on resource allocation, service delivery efficiency, and digital technology integration. It highlights the necessity for strategic funding distribution, enhanced international cooperation, and leveraging higher education institutions for innovation drive. The findings advocate for comprehensive strategies to boost innovation’s commercial efficiency and suggest further research on implementing these strategies in the context of Kazakhstan’s unique socioeconomic landscape and healthcare needs. Priority recommendations aimed at improving the efficiency of managing the country’s healthcare innovation activities have been formed. The results obtained in the study can be useful both to the scientific community and to managers at various levels in the healthcare sector.

Silent actions: Digital transformation in private enterprises with state equity participation

We examine whether and how state equity participation affects digitalization efforts of privately-owned enterprises (POEs). Using a sample of Chinese-listed POEs, we find that state equity participation in POEs inhibits digitalization-related disclosures, while concurrently promoting digital innovations. This unveils a scenario where these enterprises are “walking more but talking less.” Further analyses indicate that concerns about heightened digitalization-related disclosures potentially harming economic interests lead POEs to reduce disclosures, mitigating proprietary costs, while state equity participation helps POEs obtain more government subsidies and bank loans. Our study provides valuable insights into how ownership heterogeneity shapes digitalization strategies of POEs.

The impact of foreign participation on risk-taking in Chinese commercial banks: The co-governance role of equity checks and foreign supervision

This study examines how foreign equity participation affects the risk-taking of commercial banks using Chinese bank-level data from 2012 to 2020. The results indicate that foreign equity participation significantly reduces bank risk, and there is a U-shaped relationship between the foreign shareholding ratio and bank risk. Mechanism analysis reveals that augmenting foreign ownership strengthens shareholder equilibrium and boosts the presence of foreign directors. This structure enhances dual governance mechanisms, lowering the risk in banking activities. Considering that confounding factors affecting mediator and dependent variables can cause bias in coefficient estimation, we used machine learning methods to determine the best predictive factors affecting bank risk-taking. We indirectly verified the theoretically driven empirical model by evaluating more explanatory variables and selecting subsets of explanatory variables. In addition, we find that governance enhancements are particularly pronounced in Chinese banks, characterized by smaller scale and less income diversification. Additionally, foreign ownership significantly impacts banks' market risk more than credit and operational risks. Our results imply that China's financial regulatory authorities need to shift the focus of supervision to examining foreign shareholding ratio and corporate governance ability.

Do foreign investors make firms more transparent? Evidence from Korea

In this study, we investigate whether foreign equity participation enhances the level of transparency in Korean listed firms’ accounting information. Using panel data on the Korean listed firms during the 1999–2019 period, we find that foreign ownership has a positive effect on the accounting transparency of firms. This suggests that foreign investors effectively monitor the earnings management activities of a firm and contribute to increasing the quality of accounting information. In addition, this positive impact of foreign equity ownership is more pronounced in non-chaebol firms than in chaebols. We further show that foreign investors reinforce the effect of changes in accounting systems on the transparency of Korean firms. Finally, firms with enhanced transparency by foreign investors perform better in the future. Overall, our study highlights the importance of foreign investors for enhancing accounting transparency in the Korean stock market. (JEL F21, F65, G15, G30, M40)

Role of soil fertility and varieties in increasing the yield of grain crops

A review of publications devoted to the study of the effect of mineral fertilizers on the yield of various varieties of grain crops on various soils is presented. At the same time, special attention is paid to the assessment of the equity participation of various factors in the formation of their productivity. It was found that the greatest contribution to the formation of yield falls on soil fertility, which on sod-podzolic highly cultivated soils amounted to 68–90%, depending on nitrogen doses and varieties, and the share of nitrogen fertilizers varied from 10 to 32%. The coefficient of variation between varieties in terms of yield was in the range of 16–20%. The increase in winter wheat yield from nitrogen application in comparison with the standard Zarya variety ranged from 64 to 146%. In the experiment of VNIPTIHIM, where 33 varieties of winter wheat and 17 varieties of spring barley were tested, the share of the soil fertility factor in the formation of the winter wheat harvest was 81–82, spring barley – 83–89%, the contribution of the variety, respectively, was 6, 13 and 6%. On ordinary chernozem, its participation in the formation of winter wheat yields slightly exceeded the indicators of sod-podzolic soils, as well as the contribution of fertilizers, despite the introduction of higher doses of mineral fertilizers. The variation in yield depending on the variety was 5–6%. In the experiment on leached chernozem, which was characterized by average agrochemical cultivation, the most productive variety of winter wheat showed a yield 2 times less than that of the previously considered varieties.

An approach to the effects and characteristics of political participation through donations in political crowdfunding campaigns in Spain

This work is structured around two exploratory objectives. Firstly, it aims to analyse the effects of connective participation and consumption in which donations in political crowdfunding campaigns can be framed. Secondly, it will study the characteristics and socio-demographic profile of the people who donate to political crowdfunding campaigns. In order to obtain information, we have developed a questionnaire that has resulted in a non-probabilistic purposive sample of one hundred and twenty-five valid and complete responses. The paper closes with a discussion and the presentation of two hypotheses that reflect the main findings of this exploratory study. On the one hand, the characteristics and profile of the participants would be predominantly male, middle-aged (thirty-six to fifty years old), with a high level of formal education (university studies) and a medium income level. On the other hand, the participation analysed is hegemonic among activists with experience and commitment. This fact could reflect an increase in participatory inequalities between participatory and nonparticipatory people as a consequence of the characteristics of the forms of connective action and consumption.

Financial modeling and forecasting of consumer demand in the primary residential real estate market

Subject. This article deals with the issues of financial modeling and forecasting of consumer demand in the primary residential real estate market. Objectives. The article aims to form a financial model for forecasting consumer demand in the primary residential real estate market in the context of the regions of the Russian Federation. Methods. For the study, I used an integrated approach to financial modeling of consumer demand, based on retrospective, systems, functional and structural, and correlation and regression analyses. Results. Based on the analysis of macroeconomic factors influencing demand indicators in the primary residential real estate market in Moscow, the Moscow Oblast, St. Petersburg and the Leningrad Oblast, the article presents a financial model for forecasting the number and volume of concluded transactions (equity participation agreements) using a correlation and regression model. Relevance. The formed financial model helps assess the levels of sensitivity of the forecast to certain macroeconomic factors in the primary residential real estate market in the context of the regions of the Russian Federation. It can be used in factor analysis of the changes in individual industry indicators, and can also be used in regulatory, investment, construction, and banking activities.

Non-State Shareholder Participation and Technological Innovation in State-Owned Enterprises

The Third Plenary Session of the 18th CPC Central Committee established mixed ownership system as the main policy of SOE reform, and as the main form of SOE "mixed reform", can non-state shareholders' participation promote the technological innovation of SOE? Based on the research samples of China's A-share state-owned listed companies from 2010 to 2017, this paper finds that the participation of non-state shareholders promotes the technological innovation of SOE, and this result is more robust when the participation of non-state shareholders exceeds 10%, i.e., when the participation of non-state major shareholders is more robust. The results of the mediation effect model show that non-state shareholders' equity participation plays a positive role in the level of state-owned technological innovation by improving the incentive channel for executive compensation, while the results of the mediation effect test of the financial assets investment channel are not verified. This paper provides theoretical and empirical support for the rationality and effectiveness of mixed ownership reform from the dimension of technological innovation.

Are intangible assets favoured in effective corporate taxation?

In the context of efficient taxation, the effective tax rate acts as an indicator to help prospective investors choose to which nation locate their investment. This raises the question of which type of assets is more tax-efficient for such investments. This paper aims to assess whether intangible assets are tax-advantaged compared to tangible assets. The analysis focuses on intangible assets, while tangible assets are represented by machinery and industrial buildings. It is conducted using average effective tax rates for the year 2022, with countries categorized into old (EU-15) and new (EU-12) Member States. The EU countries are categorized in the following cluster analysis based on how the average effective tax rate affects Slovakia’s share of equity participation in FDI. Conclusion evaluates those investors from 12 old EU Member States and 2 new EU Member States would find it more tax efficient to invest in intangible assets in Slovakia than in their home country.