The Effects of Nonstate Shareholder on the Excess Perquisites: Evidence from Chinese Mixed Ownership Reform

Excess perquisites have hindered the high-quality development of state-owned enterprises, while mixed ownership reform can improve corporate governance by acquiring shareholdings and appointing directors, supervisors, and managers. This paper empirically tests the impact of mixed ownership reform on excess perquisites and the path. The results show that mixed ownership reform can restrain excess perquisites, and this restraining effect is more significant in competitive industries and local SOEs. Further research shows that mixed ownership reforms can strengthen shareholders’ supervisory power and weaken executives’ control power. The relevant findings still hold after a series of robustness tests and endogeneity tests.