Frontier Advanced Seminar Series in Economics No. 23

Penetrating State-owned Equity Ratio and Corporate Risk Resilience

Speaker: Prof. Yan LIU (Wuhan University)

Host: Prof. Anzhou ZHANG (Liaoning University)

Introducer: Prof. Yu YOU (Liaoning University)

Time: May 11, 2023 (Thursday), 15:00-16:30 (UTC +08:00)

Venue: Conference Room on the base floor of Wuzhou Garden, Chongshan Campus, Liaoning University

Online Venue: Tencent Meeting (Meeting ID: 3007551 6895)

Language: Mandarin

Abstract：Based on full sample of the shareholder information in the industrial and commercial registration, this paper constructs a complete equity network covering all listed companies, so as to penetrate the ultimate shareholder information of all listed companies. On this basis, using the natural language processing algorithm to classify the final shareholders' state-owned, individual, foreign capital and extensive shareholding attributes, and using the final shareholder's cumulative shareholding algorithm under the complex equity network, this paper can determine the state-owned share in the final shareholding ratio, that is, the penetrating state-owned equity ratio. This paper conducts detailed descriptive statistics on the proportion of penetrating state-owned equity in the listed companies, and further examines the role of penetrating state-owned equity in enterprises' response to negative external shocks. This paper finds that the increase in the proportion of penetrating state-owned equity can significantly improve the resilience of enterprises against risks. At the same time, there is an inverted U-shaped relationship between the proportion of penetrating state-owned equity and corporate risk resilience. The findings strongly support the orientation of the mixed ownership reform of enterprises in the new stage of development, and provide a quantitative reference.

Speaker Introduction: Yan LIU is an Associate Professor from the Department of Finance, School of Economics and Management, Wuhan University. He is the acting deputy director of the department, and the deputy director of the Financial Big Data Research Center of the Big Data Research Institute of Wuhan University. His main research fields are Financial Intermediary Theory and Macroeconomics. He presides over the "China Banking Database (CBD)" project. He hosts a number of research projects of the National Natural Science Foundation of China. He also participates in the key research and development programs of the Ministry of Science and Technology, the key projects of the National Natural Science Foundation of China, and the major projects of the National Social Science Foundation of China. His research results have been published in People's Daily (Internal Reference), Economic Research Journal, China Industrial Economics, Financial Research, China Economic Quarterly, China Economic Review, Accounting and Finance, and Finance Research Letters. He won the Best Paper Award of the first PwC3535 in 2020, and won the Best Paper Award of the China Finance Annual Conference twice.