Analysis Of The Governance Effect Of Introducing Pe Into State-Owned Enterprises For Mixed Ownership Reform

After the Third Plenary Session of the 18 th CPC Central Committee,the reform of mixed ownership became the focus of state-owned enterprise reform.With the deepening of the reform,PE(private equity investment fund)participated in the reform of state-owned enterprises,becoming an important form of the new round of reform.Beijing,Shanghai,Guangdong,other provinces and cities which are in the fore front of the reform have also issued documents to support PE participate into state-owned enterprises.When PE as a long-term investor,they will actively participate in the governance of state-owned enterprises and has the effect of improving the single structure of state-owned enterprises,low economic efficiency,irregular governance mechanism,and high financing costs,due to its flexible mechanism.This paper used literature analysis to sort out the theories related to mixed ownership of state-owned enterprises and PE,sorted out the research framework of PE for participating into state-owned enterprises,and analyzed the event from the aspects of motivation,action mechanism,then analyzes the ownership structure,governance mechanism and management decision to figure out the influence of PE participation in mixed reform on the governance effect of state-owned enterprises.The case company is the first one to reform in the new round of reform of state-owned enterprises and the plan is only made for Hony Shanghai whose totally different from entity enterprise investor in governance mechanism.This paper hold Hony Shanghai as the research object to analyze the motivation of the reform and governance effect.Then the paper analyzes the company introduced Hony Shanghai to participate in the economic consequences of a mixed change,it is concluded that Hony Shanghai to participate in the company has the effect of improve corporate governance structure,enhance the competitiveness of state-owned property,and the paper analyzed from the perspective of financial market reaction and financial performance to reflect the result of introducing PE to participate in mixed reform.The research conclusion of this paper is as follows:(1)PE participation in the mixed reform of state-owned enterprises has the function of realizing the appreciation and preservation of state-owned assets.(2)When PE participates in the mixed reform of state-owned enterprises as a long-term investor,it can help state-owned enterprises establish a diversified shareholding structure and improve the corporate governance structure,so as to improve the flexibility of operating decisions of state-owned enterprises.(3)PE participating in the mixed reform of stateowned enterprises as a long-term investor can improve the efficiency of corporate governance.