A Study on the Effect of Heterogeneous Equity Mix on the Performance of Mixed Ownership Firms

Abstract

This paper empirically tests the impact of heterogeneous equity mix on corporate performance using unbalanced dynamic panel data of China’s A-share main board market from 2008-2019 and comparatively analyzes the differences in the impact of heterogeneous equity mix on different holding companies’ performance and socioeconomic efficiency. The results show that a heterogeneous equity mix has no significant effect on the operating efficiency of enterprises, but has a significant positive effect on the operating efficiency and socioeconomic efficiency of enterprises. However, a heterogeneous equity mix does not promote the transformation of operation and governance mechanisms, resulting in no significant improvement in enterprise operating efficiency.