Abstract

In the context of mixed-ownership reform being further deepened in Chinese state-owned enterprises, based on principal-agent theory and resource-based theory, the study uses Chinese A-share listed state-owned enterprises from 2008-2019 as the research sample, and analysed the impact of non-state shareholders board power on acquisition decisions, in addition to exploring the moderating role of board deep-level faultlines. It was found that empowering non-state shareholders board power increased the likelihood of state-owned enterprises making acquisition decisions; However, if there were deep-level faultlines in the board, the ability of non-state shareholders board power to motivate state-owned enterprises to make acquisition decisions was diminished. The findings of this study suggest that giving non-state shareholders board power may bring benefits to state-owned enterprises in terms of business investment, but with a focus on a reasonable allocation of board members.

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