Financial Effect Analysis Of Equity Optimization Of Gree Electric Appliances

The separation of management right and ownership of enterprises is the need of enterprises and industrial modernization development,but there is still an urgent need for a set of effective methods and means to make up for the deficiencies of "separation of two rights" in the process of implementation,and promote the sustainable development of enterprises.Equity reform system originated in western countries can not only effectively alleviate the agency problem,but also improve the financial performance of enterprises by improving corporate governance.With the formulation of relevant laws and regulations and the improvement of supporting mechanisms,Chinese enterprises have gradually accepted and applied the mixed ownership reform of the ownership structure to govern their companies.Many state-owned enterprises,represented by Gree Electric Appliances,have achieved remarkable results in the mixed ownership reform and have made remarkable achievements.As a leading enterprise in the home appliance industry,Gree Electric Appliances’ valuable experience in mixed ownership reform is of great reference significance to enterprises in the same industry.This paper takes Gree Electric Appliances,Inc.Of Zhuhai(hereinafter referred to as Gree Electric Appliances)as the research object to analyze the impact of its mixed-ownership reform on its financial performance.As a leading enterprise in the home appliance industry,Gree Electric Appliances’ valuable experience in mixed-ownership reform is of great reference significance to enterprises in the same industry.In this paper,the analysis of the ownership structure of the related research is sorted out and extracted,and then separated the ownership structure reform related theories,the introduction of state-owned capital advantage enrichment effect and non-state-owned capital catfish effect analysis of the necessity of equity optimization,the establishment of capital heterogeneity and financial effect evaluation theory as the basis of the research framework.Based on the introduction of the basic situation and industry status of Gree Electric Appliances,this paper explains the motivation of its mixed-ownership reform and expounds the specific process of the enterprise’s mixed-ownership reform,including the analysis of the status quo and characteristics of the ownership structure and the characteristics of the ownership structure after the reform.In view of the practice of Gree Electric Appliances’ mixed equity reform,this paper analyzes the financial effects from vertical and horizontal perspectives,focusing on the analysis of profitability,operating capacity,debt paying ability and growth ability before and after the reform,and makes a comparative analysis with other enterprises in the same industry to deeply analyze the reform effect.In the end,the author draws the analysis conclusion,summarizes the reform results and the parts worth learning from,and finds the problems existing in the reform in the analysis,puts forward solutions and improvement measures for the existing problems,that is,to improve the supervision mechanism and prevent the agency risk;At the same time to improve the company’s articles of association,alert to be raised;We should also perfect the incentive mechanism of stock right and improve the incentive effect.Finally,the equity balance mechanism should be perfected to safeguard the interests of minority shareholders.By analyzing the process of stock ownership reform of Gree Electric Appliances,a leading enterprise in home appliance manufacturing industry,this paper hopes to provide help and reference for enterprises facing reform and restructuring.