The Accountability System for Operation and Investment and the Innovation of State-owned Enterprises: Evidence from China

WenJing Yu

doi:10.63313/EBM.9156

Authors

WenJing Yu School of Accounting, Anhui University of Finance and Economics, Bengbu 233030, China Author

DOI:

https://doi.org/10.63313/EBM.9156

Keywords:

State-owned enterprises, The Accountability System for Operation and Investment, Corporate innovation

Abstract

This study employs a multi-period difference-in-differences model to empirically examine the impact of operational and investment accountability on innovation in state-owned enterprises(SOEs), grounded in China's unique phased implementation of this accountability system nationwide. Findings reveal that following the introduction of the accountability framework, innovation outputs in SOEs increased significantly. Government subsidies amplify the positive effect of accountability on innovation, while two-tier agency costs diminish this effect. These findings not only provide new evidence for the effectiveness of the accountability system but also offer important policy implications for promoting innovation in state-owned enterprises.

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