Research On The Influence Of Non-controlling Private Shareholders On The Corporate Social Responsibility Of State-owned Enterprises

Mixed ownership reform is a market-oriented reform strategy intended to improve the governance structure of state-owned enterprises.At the same time,state-owned enterprises are also expected to exhibit better CSR intensity than other publicly listed firms.Whether mixed-ownership enterprises can improve their economic efficiency while maintaining their CSR investment has received extensive attention from the academic and public.A stream of corporate governance research have investigated the effect of ownership structure on CSR.The concentration of ownership and strong government influence make the CSR of state-owned enterprises show different characteristics from private enterprises.With the private shareholders participating in state-owned enterprises,private shareholders can implement more market-driven decisions because they have the incentives and voting power to constrain the social objectives of the government.Will this change the motivation of state-owned enterprises to fulfill CSR,and then make a difference to their CSP in different dimensions?By using a sample of state-owned listed companies from 2013 to 2019,this paper empirically examine the governance role of private shareholders on CSR of state-owned enterprises.The results show that(1)the increase of private directors improves the CSR intensity of state-owned enterprises in some dimensions,which is shareholder,customers and suppliers,and environmental responsibility,while the employee and government responsibility intensity remained stable;(2)this positive effect is more pronounced in regions with market-oriented external institutional environment;(3)furthermore,private shareholder affect CSR intensity through strengthening management incentives and internal control quality;(4)finally,the improvement of shareholder,customers and suppliers,and environmental responsibility has a positive influence on shareholder value,and private shareholder governance has a positive moderating effect on this impact.The conclusions of this paper have implications for promoting mixed ownership reform and enhancing the strategic nature of SOEs’ CSR.First,the mixed ownership reform can promote the realization of their economic goals and social goals at the same time,which encourage private shareholders to play more pronounced governance role in the board of directors of state-owned enterprises.Secondly,the conclusion supports the argument that CSR is multi-dimensional and strategic,which guide the managers of state-owned enterprises to allocate more resources to the stakeholders that can create value for business operations.