Research On The Influence Of Political Association On The Performance Of Mixed Ownership Reform

The mixed ownership reform of state-owned enterprises in China is a difficult and long process.As a key node of the reform of state-owned enterprises,the central government will carry out vertical promotion in key areas in 2020,so as to expand and strengthen state-owned capital and continue to promote the mixed ownership reform.Although China has a lot of experience in developing mixed ownership,we are always faced with such difficulties,that is,how to deal with the relationship between the government and SOEs."Diversified ownership" is one of the reasonable roadways to enhance the potency reform of state-owned companies at present.How to view the political connection and correctly work out the relationship between the central party and nationalized companies is significant to the performance of the new round of diversified ownership reform of nationalized companies.This paper concludes that after 2013,whether SOEs have undergone mixed ownership reform or not will reduce the degree of political connection of SOEs,and the decline degree of political connection of enterprises that have carried out mixed ownership reform is greater than that of enterprises that have not carried out mixed ownership reform.In the link with diversified ownership innovation,party connection and company performance,party connection plays an intermediary role.Mixed ownership reform improves SOE performance by reducing the degree of political connection.However,because the natural political nature of nationalized enterprises,political link is inevitable,and political link will weaken the improvement effect of mixed ownership innovation on company performance.Nationalized companies should not blindly establish political connections to improve corporate performance,and should take the chance of the mixed ownership innovation,and both the government and companeis should positvely take part in the mix ownership innovation of companies.The central government should establish a healthy relationship with SOEs and avoid undue interference that affects the functioning of the market.Governments at all levels should actively implement the call for spliting government regulation from assets,and spliting government regulation from company management.They should not limit SOEs’ business fields or business models,return SOEs’ independent management rights to them,and let them innovate independently and diversify their operations.Measures should be further balanced to actively introduce non-state assets and balance the governance mechanism of state-owned companies’ mixed innovation,so as to arouse the creativity and enthusiasm of state-owned companies and enhance their overall progress and value.