Reverse Mixed-Ownership Reform and the Information Efficiency of the Capital Market

Reverse mixed-ownership reform has gradually become an important means to promote the development of private enterprises in the current economic environment. Using data on private enterprises in China's A-share market from 2012 to 2023, an empirical analysis was conducted on how reverse mixed-ownership reform affects the information efficiency of private enterprises in the capital market. The results show that reverse mixed-ownership reform of private enterprises helps improve the information efficiency of enterprises in the capital market. This finding still holds true after a series of endogeneity and robustness tests. Further analysis revealed that reverse mixed-ownership reform enhanced the information efficiency of private enterprises in the capital market by improving the internal governance structure of the company. Heterogeneity analysis revealed that reverse mixed-ownership reform had a more significant effect on improving the capital market information efficiency of private enterprises in enterprises with a lower level of marketization and a lower environment for private economic development.