Will The Involvement Of NON-state Shareholders Promote SOEs' Performance?

In 1993,the Third Plenary Session of the 14th CPC Central Committee firstly proposed the concept of "mixed ownership" and clarified the direction of establishing a modern enterprise system.Although the concept mixed ownership has been proposed earlier,its development is far from expectation.Therefore,it is of great practical significance to study the influence of non-state shareholders' involvement on the SOEs'performance under the mixed ownership reform.This paper takes the 2015-2017 state-owned competitive listed enterprises in A-share market as research samples,manually collects the attribution,relationships and shareholding ratio of top ten shareholders and the data of directors,supervisors and senior executives appointed by the top ten non-state shareholders.This paper divides non-state shareholders' participation in corporate governance into two parts:equity structure and high-level governance so as to find out its effects on SOEs' performance.Then we discuss the mediating effect of agency costs between non-state shareholders' participation and SOEs' performance.We further investigate the effect of enterprise heterogeneity and study the moderating effect of government control.Through the empirical test,the conclusions are as follows.(1)Non-state shareholders' participation in corporate governance significantly promote SOEs' performance and the significance is greater if non-state shareholders appoint boarders supervisors or executives;(2)Agency cost is a partial mediator between the high-level governance and SOEs' performance but not between equity structure and SOEs' performance;(3)Compared with local SOEs and the SOEs located in low-marketing-level area,the promoting role of Non-state shareholders'participation in corporate governance on SOEs' performance is more pronounced in the central SOEs and the SOEs located in high-marketing-level area;(4)The degree of government control positively moderates the mediating influence of agency cost on SOEs'performance.Compared with the existing literature,this paper takes the mixed ownership reform as the breakthrough point and divides non-state shareholders' participation in corporate governance into two parts,namely equity structure and high-level governance,which enriches the research of non-state capital impacting on SOEs' performance.This paper further study the mediating effect of agency cost,not only enriching and deepening the effecting mechanism of the non-state shareholders' participation on SOEs' performance,but also helping us better evaluate the economic effect of mixed ownership reform.In addition,researches on the moderating effect of government control and the effect of enterprise heterogeneity help us further understand how the internal and external environment factors of enterprises affects SOEs and have a realistic guiding significance for the mixed ownership reform.