Mingze Gao

Identify Chinese State-Owned Enterprise using CSMAR

| 1 min read

Many research papers on Chinese firms include a control variable that indicates if the firm is a state-owned enterprise (SOE). This is important as SOEs and non-SOEs differ in many aspects and may have structural differences. This post documents the way to construct this indicator variable from the CSMAR databases.

Specifically, we need the CSMAR China Listed Firms Shareholders - Controlling Shareholders dataset. On WRDS, this dataset is named hld_contrshr, located at /wrds/csmar/sasdata/hld.

Inside this dataset there're a few variables identifying the ultimate controlling shareholder.

According to the CSMAR documentation, s0702b can be one of the following. Apparently, s0702b=1100 means the firm is a SOE.

1000Enterprise business unit
1100State-owned Enterprise
1210Collective-owned enterprises
1200Private Enterprises
1220Enterprises with funds from Hong Kong, Macau and Taiwan
1230Foreign-funded enterprises
2000Administrative departments or institutions
2100Central institution
2120Local institution
2500Social Organization
3000Natural Persons
3110Domestic natural persons
3120Natural person from Hong Kong, Macao and Taiwan
3200Foreign natural person

Princeton University Library has another guide on other ways to identify Chinese SOE.