Author(s)

Cao Xuan ¹

Affiliation(s)

¹ College of Innovation and Entrepreneurship, Nanjing University of Industry Technology, Nanjing, China

Corresponding Author

Cao Xuan

ABSTRACT

This paper examines how Strategic Equity Capital (SEC) stabilizes corporate operational risk, shifting the paradigm from value creation to risk mitigation. Utilizing Chinese A-share data (2014–2024), we find that SEC significantly reduces operational volatility. Mechanism tests unveil a symmetric dual pathway: an "offensive" path improving innovation efficiency and a "defensive" path strengthening internal controls. This risk-reduction effect is more pronounced in growth-stage, high-growth, and concentrated-ownership firms. Our findings provide a "governance premium" rationale for fostering long-term investment ecosystems to enhance corporate resilience.

KEYWORDS

Patient Capital; Strategic Equity; Operational Risk; Innovation Efficiency; Internal Control

CITE THIS PAPER

Cao Xuan. Patient Capital as a Stabilizing Force in Mitigating Corporate Operational Risk. Financial Engineering and Risk Management (2026). Vol. 9, No. 1, 10-21. DOI: http://dx.doi.org/10.23977/ferm.2026.090102.

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