Assessing the role of state-owned equity participation in promoting green emission reduction among private enterprises in China

Purpose Can state-owned equity participation (SEP) effectively decrease pollution emissions from private enterprises? If so, what mechanisms facilitate this process? Additionally, what other factors may influence this dynamic? Design/methodology/approach Based on the data of Chinese A-share listed private enterprises from 2009 to 2023, this article uses a fixed effects model to examine the impact of SEP on pollution emissions of private enterprises. Findings The results indicate that SEP can significantly reduce the pollution emissions of private enterprises, and the research conclusion still holds true after a series of endogeneity and robustness tests such as instrumental variable testing, placebo testing, PSM testing, etc. Mechanism analysis indicates that SEP reduces the pollution emissions of private enterprises by strengthening social responsibility awareness (concept governance), promoting green technology innovation (process governance), and increasing investment in environmental protection equipment (end-of-pipe governance). Moderating effect test finds that media attention can strengthen the inhibitory effect of SEP on the pollution reduction of private enterprises. Heterogeneity analysis shows that the effect of SEP on pollution reduction is more significant for private enterprises with low degrees of marketization and low levels of digitalization. Originality/value The conclusions are not only of great significance for sustainable development in China, but also offer a fresh viewpoint for other developing countries to explore the path of modern pollution governance.