Performance Analysis Of China Unicom’s Mixed Ownership Reform

In the process of development of state-owned enterprises,due to the imperfect corporate governance structure,the motivation of managers’ management is separated from the owner’s interest demand,which leads to the low operating efficiency of state-owned enterprises and the serious decline of market competitiveness.In order to improve the operation efficiency of state-owned enterprises,China’s state-owned enterprises have been carrying out mixed ownership reform since 2016.As the first batch of pilot enterprises of mixed ownership reform,China Unicom has not only established a good corporate governance structure in the reform process,but also avoided the loss of state-owned assets,which is of important representative and exemplary significance to other state-owned enterprises about to carry out mixed ownership reform.This paper will be based on the case discussed in the process of restructuring plan and effect,the analysis is introduced into how strategic investors affect financial performance of state-owned enterprises,the introduction of strategic investors financial performance evaluation,to help Chinese state-owned enterprises as the main body of socialist public ownership give full play to its leading role in the economic system,improve the operation efficiency and competitiveness of state-owned enterprises,for the following other types of mixed ownership reform of state-owned enterprises to provide reference and thoughts.This paper uses case analysis to describe and evaluate China Unicom’s reform plan,reform motivation and reform performance,taking China Unicom’s mixed-ownership reform plan as an example.First,this paper,with mixed ownership reform as the key word,sorts out the theoretical research on the motivation and effect of mixed ownership reform,the choice of strategic investors and the impact on financial performance,and obtains the existing research results and shortcomings.Secondly,this paper analyzes the mixed ownership reform plan of China Unicom to understand the two main points of mixed ownership reform and the motivation of introducing strategic investors.Then,from the two aspects of improving the internal corporate governance model and optimizing the external competitive environment,this paper analyzes the ways that the reform affects corporate performance,and evaluates the effect of China Unicom’s mixed-ownership reform from the two aspects of market performance and financial performance.The research found that: in terms of market performance,China Unicom’s market share increased significantly and its stock price performed well on the reform announcement date.In terms of financial performance,the development capacity ofChina Unicom has improved the most,and the increase of profit is the main factor to improve its financial performance.Through the reform,China Unicom has established an effective staff management model and corporate governance structure in its internal governance model,and its competitive strength has been greatly improved.Finally,the research conclusion and case enlightenment are obtained.The key to the success of China Unicom’s reform is the proper strategic investor,the good management structure and the perfect employee incentive and exit mechanism.For other state-owned enterprises that are undergoing reform or are about to undergo reform,it is necessary to select appropriate strategic investors,rationally adjust the management structure of the company and establish and improve the staff management mode,taking into account the characteristics of different enterprises and industries.