Research On The Optimal Proportion Of State-owned Shares

China is entering the period of rapidly economic transformation.One of the most important missions is State-Owned-Enterprises reform(SOE reform).It can play unique supporting for the whole reform of the economic system.The state takes the reform seriously and we can see the intention from the policy documents no matter the one released in September 2015 called"Guidance on deepening the reform of state-owned enterprises " or released in February 2016,"Ten pilot reforms".In the process of reform,the enterprise can realize the diversity of ownership structure by the way of corporate acquisition which achieved the goals of adjusting the enterprise ownership structure&developing a mixed ownership economy.Above all,we research on the best proportion of state-owned shares which have already been completing the split-share reform,based on the corporate acquisitions.We hope this corporate ownership structure is the one which can maximize the enterprise value.In this paper,a total of 2196 samples which have been generalized and calculated,were used to do the empirical analysis.These samples were selected because of the acquisition they made from the year of 2008 to 2014 in China’s securities market.We believe that the enterprise has completed the split-share reform in 2008.Piecewise linear regression model is used to research the relationship between the enterprise value after the merger(explained variable)and the proportion of state-owned shares(explanatory variable).The partial node is 30%&50%of the explanatory variable.The asset scale,capital structure,growth,operating cash flow and agency cost which happened at the end of the acquisition year is the control variable of the model.The aim of the analysis is to achieve the optimal proportion of state-owned shares which can maximize the enterprise value.The results show that the proportion of state-owned shares has a type of" W"relation with the enterprise value.What the core point is the proportion of state-owned which between 35%to 40%is the middle peak.This conclusion has a development compared with the present scholars who considered the type of "U" relation between the proportion of state-owned shares and the enterprise value.This result also proves the rationalization of mixed ownership.Based on the optimal proportion of state-owned shares,policy suggestions are put forward in regard to the realization way of mixed ownership and the value of national asset.