Dynamic impact of mixed-ownership reform on enterprise innovation with different property rights

We use the multi-period difference-in-differences combined with the propensity score matching method (PSM-DID) to examine the dynamic impact of mixed-ownership reform on state-owned enterprises (SOEs) and Private enterprises innovation. Our findings are as follows. Firstly, mixed-ownership reform consistently enhances the innovation level of SOEs and private enterprises, but this effect tends to decline in SOEs and increase in private enterprises, and it is found by comparison that the mixed-ownership reform benefits private enterprises' innovation more than SOEs. Secondly, mixed-ownership reform raises SOEs and private enterprises' innovation when equity incentives are low. However, as equity incentives increase, the reform decreases SOEs' innovation while increasing private enterprises' innovation. Thirdly, fiscal pressure weakens the positive impact of mixed-ownership reform on the innovation levels of both SOEs and private enterprises. The findings of this study can offer valuable insights for policymakers on increasing the innovation levels of businesses with different property rights through mixed ownership reform.