Can Reverse Mixed-Ownership Reform Promote Green Transformation of Private Enterprises?

Highlights•Reverse mixed-ownership can promote the green transformation of private enterprises.•Reverse mixed-ownership reform promotes the green transformation of private enterprises by easing their financing constraints•Reverse mixed-ownership reform impairs internal control and impedes green transformation.•Reverse mixed-ownership reform is heterogeneous for the green transformation of private enterprisesAbstractThe private sector greatly influences China's economy, which is crucial for fostering consistent economic growth. This paper takes A-share listed private enterprises (PEs) from 2009 to 2022 as the research object, uses the time-series regime-switching detection method to detect the changepoints of reverse mixed-ownership reform (RMOR) of PEs, and utilizes the staggered difference-in-difference (DID) model to investigate the impact effect and mechanism of the RMOR policy on the green transformation (GT) of PEs. The results show that the RMOR significantly promotes the GT of PEs. Additional mechanism tests reveal that the RMOR will lower the level of internal governance and impede the GT of PEs. However, it will help alleviate the financing constraints of PEs and promote their GT. The results of the moderation analysis reveal that RMOR has a greater impact on the GT of small and medium-sized enterprises (SMEs) compared to large-scale enterprises. At the industry level, RMOR exerts a more significant influence on capital-and technology-intensive industries than on labor-intensive ones. Additionally, RMOR impacts the GT of PEs in regions with lower government regulatory intensity more than in regions with higher regulatory intensity. The study's findings provide new empirical insights, decision-making tools, and innovative perspectives for the GT of PEs.