Abstract: As an important material and political foundation of socialism with Chinese characteristics, the smooth operation of the overseas economic activities of state-owned enterprises (SOEs) is crucial for optimizing their business structure and promoting their high-quality development. Taking state-owned listed companies undergoing mixed ownership reform as the research object, this study investigates the impact of non-state shareholders' participation in SOE governance on the operational performance of SOE overseas subsidiaries. The findings show that the participation of non-state shareholders in the governance of state-owned enterprises can weaken government intervention, inhibit the aggressive decision-making by senior executives, and strengthen internal supervision within state-owned enterprises. Therefore, the participation of non-state shareholders in the governance of state-owned enterprises can improve the operational performance of overseas subsidiaries of state-owned enterprises. The heterogeneity tests indicate that non-state shareholders with rich foreign trade experience, high innovation levels, extensive management experience, and high shareholding ratios are more conducive to improving the operational performance of overseas subsidiaries of state-owned enterprises. The extensive research has shown that the participation of non-state shareholders in the governance of state-owned enterprises can curb overseas related-party transactions conducted by these enterprises, thereby enhancing their overall profits. To this end, it is necessary to effectively safeguard the rights of non-state shareholders to participate in the governance of state-owned enterprises and improve the management system of overseas subsidiaries of state-owned enterprises.

Key words: performance of overseas subsidiaries, state-owned enterprises with mixed ownership, non-state shareholders' governance, overseas related-party transactions