The developing Chinese stock market witnesses the increase of listed non-state owned firms. To dig out their investment value, the paper studies the difference of returns and investment value of state-owned and non-state owned firms by introducing dummy variables, on the basis of which interacting variables are also employed to identify what causes such difference. The paper finds out: (1) Non-state owned firms have, on average, lower profitability, growth prospects, capital mobility and long-term solvency than state owned firms; (2) Profitability, growth prospects and capital mobility are important factors that make the difference between their investment value; (3) Non-state owned firms have lower shareholder concentration than state owned firms, however, both types of firms use more or less the same incentive scheme for managers. |