Control Right,Property Right And Efficiency

Enterprise efficiency is an important indicator of the development of the national economy,while state-owned enterprises,the important part of the national economy,tends to be inefficient.In order to improve the efficiency of state-owned enterprises and enhance the vitality of the national economy,China started SOEs' reform in the end of the 20th century.By transferring control of state-owned enterprises,the reform of state-owned enterprises aims to alleviate agency problem and budget soft constraints,rebuilds the incentive system for managers,and ultimately improves the operating efficiency and financial performance.However,the reform of property rights in state-owned enterprises has taken on three different directions from the beginning of 2000.They are "the state retreats and the private sector advances"(from the early 2000s),"the state advances and the private sector retreats"(from 2005 to 2009)and the mixed-ownership reform(after 2013).No matter which direction of property rights reform,it will lead to the transfer of control rights between different subjects,which will have a huge impact on the production,operation and profit of the merged enterprises.What's more,different types of control transfer will have a different channel of influence due to the different characteristics of different entities.It will be benefit to SOEs' reform,the construction of a modem property rights system,and the vitality of the national economy,if we are able to sort out the influence and channels of the transfer of control rights.Based on the above considerations,this paper takes the change of actual controller of a listed company as the criterion of the change of control rights,selects the A-share listed companies that have transferred the control right from 2003 to 2014 as the research object,and uses Heckman's two-stage model to study the impact of transfer of control on the operative efficiency and financial performance.Further,referring to existing literature,this paper summarizes three factors that affect the operating efficiency and financial performance:the first type of agency problems,the second type of agency problems and external risks,and check the influence channel through the interaction factor.We find that the transfer of control can improve the management efficiency and financial performance of the merged enterprises generally.More specifically,when the control right shifts from the state-owned entity to the private-owned entity,the corporate efficiency is significantly improved,as well as the financial performance;What's more,all types of control transfers will lead to a significant increase in the ROA of the merged companies.This conclusion still holds in Heckman's two-stage model.In addition,further channel tests show that different types of transfer have different channel.More specially,when the control right is transferred from the state-owned entities to the private-owned entities,the primary influence channel is the decrease of the first type agency problems.At the same time,the reduction of the second type of agency problem is the main reason for the improvement of financial performance that brought by the transfer of control between different private enterprises.In addition,external risks still have a negative impact on the positive effect of the transfer of control,but the positive effects are still significant.The conclusion of this paper shows that the transfer of control has a significant positive effect on the operating efficiency and financial performance of listed companies,and different types of transfer shows different characteristics and has different influence channels.For the transfer of control right from state-owned entity to private-owned entity,the transfer of control can improve operational efficiency and financial performance,whose main influence channel is the alleviation of the first type of agency problem.For these listed companies whose control right only transfer between different private entities,the transfer of control still brings the improvement of operational efficiency and financial performance,which is due to the relief of the second type of agency problem.In addition,these type of transfer are also affected by external risk.Therefore,we should treat each type of control transaction differently,strengthen the positive influence and weaken the negative impact,and maximize the positive effects of transfer of control finally.