Exploring the Nexus of Enterprise Ownership Structure and Food Safety Incidents: Evidence from China

Enterprises with different ownership structures adopt diverse strategies to respond to food safety incidents (FSIs). This study explores the nexus between enterprise ownership structure and the effect of FSIs using 2,896 cases from February 2004 to February 2017. The estimated results show that the FSIs of state-owned enterprises have a greater social impact than those of foreign-funded and private enterprises. The government may adopt a "censorship" strategy to handle FSIs in state-owned enterprises, resulting in a time-lag effect. This strategy will bring substantial economic losses to not only its own sector but also other food sectors. For foreign-funded enterprises with FSIs, their rapid responses prevents significant economic losses. These findings provide empirical and theoretical support for strengthening food regulations and creating immediate response mechanisms for state-owned enterprises.