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State-owned shares, government background customer relationship and non-state-owned enterprises’ financing cost

Zhao Mengjie et al.

Pacific Accounting Review2025https://doi.org/10.1108/par-10-2024-0250article
AJG 1ABDC B
Weight
0.53

What the paper says

Purpose This paper aims to investigate the alterations in financing cost for non-state-owned enterprises (non-SOEs) subsequent to the introduction of state-owned shares through the lens of ownership structure. It also investigates the role of government background customer relationship as a possible factor that can mediate the relationship between state-owned shares and non-SOEs’ financing cost. Design/methodology/approach A sample of the Chinese A-shares listed non-SOEs from 2009 to 2022 is used in the study. The study applies multivariate regression analyses to investigate the impact of state-owned shares on non-SOEs’ financing cost. Baron and Kenny’s (1986) three-step model is estimated to test the mediating effect exerted by the government background customer relationship. Findings The findings indicate that state-owned shares are significantly negatively related to non-SOEs’ financing cost through extending government background customer relationship. In addition, this study finds that green innovation in non-SOEs diminishes this effect. Heterogeneity analyses reveal that the function of state-owned shares is more pronounced when state-owned shareholders are investment-oriented and during periods of heightened economic policy uncertainty. Finally, the results suggest that lower financing costs are shown to enhance enterprise resilience. Originality/value The authors analyze the possible homogeneous linkage between state-owned capital and the government and explore the possible indirect impact of state-owned shares on the financing cost of non-SOEs from the perspective of government background customers’ procurement demand. The results confirm the theoretical and practical usefulness of state-owned shares and provide new empirical evidence to alleviate the expensive financing of non-SOEs.

8 citations

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https://doi.org/https://doi.org/10.1108/par-10-2024-0250

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@article{zhao2025,
  title        = {{State-owned shares, government background customer relationship and non-state-owned enterprises’ financing cost}},
  author       = {Zhao Mengjie et al.},
  journal      = {Pacific Accounting Review},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1108/par-10-2024-0250},
}

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Evidence weight

0.53

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.70 × 0.15 = 0.10
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.