Research On The Impact Of State-Owned Enterprises' Mixed Ownership Reform On Corporate Governance And Performance

This paper studies mixed ownership reform in the way of introducing strategic investors into state-owned enterprises in China and its impacts on corporate governance and performance,using three research methods of combining theory,case study and demonstration.The paper firstly elaborates theories related to mixed ownership reform,corporate governance and firm's performance,including stakeholder theory,principalagent theory and strategic alliance theory.Also the paper takes the mixed ownership reform completed by China Unicom in November 2017 as a case study.It is found that the mixed ownership reform has brought about many aspects of benefits to China Unicom with decrease of ownership concentration,improvement of equity balance,further integration of state-owned and non-state-owned capital,improvement of governance mechanism,stock ownership diversification and structural optimization.Also key financial indicators are optimized,it's concluded that company's current P/E ratio is reasonable and company is prosperous in the medium and long term.In addition,being company's new top ten shareholders,the strategic investors have business cooperation with China Unicom,all parties can share the multilateral and multidimensional advantages of business development.In order to further explore corporate governance factors this way of mixed ownership reform brings about that influences corporate performance,the relationship among ownership structure,equity incentive and corporate performance is analyzed through empirical research.It is found that the decrease of ownership concentration,enhancement of equity balance both will improve the firm's financial performance.The impact of equity incentive on corporate performance hasn't been found.Also,the impacts of ownership concentration and equity balance on corporate performance are both inversely U-shaped,which means there is an inflection point to keep firms at best stage of performance.So the results prove that through introduction of strategic investors,state-owned enterprises participating in the reform of mixed ownership reform improve their ownership structure by appropriately reducing the first largest shareholder's holding ratio,improving equity balance,thus firms improve performance by achieving better ownership diversification and decentralization.Based on theory and empirical analysis,This paper explores the advantages and possible problems of introducing strategic investors into state-owned enterprises.The introduction of strategic investors helps the state-owned enterprises achieve the dual or multiple objectives of improving corporate governance and development of relevant fields.The perfection of corporate governance is reflected in the diversification and structural optimization of ownership and fuller supervision of shareholders.Strategic investors generally represent non-state-owned capital,which is helpful to the integration of state-owned and nonstate-owned capital,and to improve the efficiency of governance.And the strategic investors themselves have advantages,they often have strategic cooperation with the target company,which helps both sides draw advantageous resources from each other and realize business synergy.In terms of possible problems,protection of property rights and capital rights,integration of corporate culture and competition of the industry need to be paid attention to.In order to promote mixed ownership reform to truly benefit stateowned enterprises,to truly improve corporate governance and performance,corresponding policy implications are put forward to provide reference and insights for other state-owned enterprises to implement mixed ownership reform.