How state-owned equity participation promotes the digital transformation of nonstate-owned enterprises: Evidence from China

This paper empirically investigates the effect and influence mechanism of state-owned equity participation on digital transformation in Chinese listed nonstate-owned enterprises (non-SOEs). The estimates confirm the above effect. Mechanism analysis identifies two channels in such a relationship: the alleviation of financial constraints and the enhancement of corporate governance. Additional heterogeneity results demonstrate a more profound impact for those introducing strategic state-owned shareholders. Further analysis uncovers an optimal ratio for state capital, and the above effect can ultimately facilitate the high-quality development of non-SOEs.