Heterogeneous Shareholders’ Participation, COVID-19 Impact, and Innovation Decisions of State-Owned Firms: Evidence from China

Innovation ability has become an important factor affecting the global competitiveness and sustainable development of state-owned enterprises (SOEs) in China, particularly during COVID-19 period. This study examined association between heterogeneous shareholders SOE innovation, addition to moderating impact corporate governance characteristics pandemic on this association. Using data from Chinese A-share listed mixed ownership (MOEs), we found that reform SOEs positively affected firm innovation compared other MOEs by reducing agency costs, indicating manager view channel was proven. We also resulted more output holding (SHMOEs) with affiliated managers, those audited lower reputation accounting firms or had a external marketization, The implications are importance for improving shareholders’ active participation SOEs.