A Study On The Applicability Of Property Rights Reform In The Form Of "retirement Of The State And Advance Of The People"

After the Third Plenary Session of the Eighteenth Central Committee of the Party put forward a clear direction for the development of state-owned enterprise reform,the supporting documents of the Central Government were successively issued,and a new round of state-owned enterprise reform momentum was strong.After the reform of state-owned enterprises' property rights,whether the state continue to occupy the controlling position,the private enterprises occupy the controlling position,the state and private enterprises jointly control,or whether the company will become a structure with no actual controller is a matter of great concern in both academic and practical world.This paper takes the property rights reform of state-owned enterprises as the starting point,and introduces Gree Electric Appliances(Hereinafter referred to as‘GREE'),which has carried out many representative property rights reforms as an example.This paper sorts out Gree's property rights change over the past 25 years and focuses on the characteristics of state-owned enterprises which is suitable to carry out the property rights reform similar to Gree.At the same time,this paper will study the changes in the corresponding corporate governance mechanism after the state-owned enterprises' property rights reform.This paper hopes to provide some reference for the subsequent state-owned enterprise property rights reform.In the first part,this paper first introduces the background and current situation of China's state-owned enterprise property rights reform,and elaborates the research significance of this paper from the perspective of theory and practice.Then it introduces the research ideas,research methods and basic framework of this article,and finally it points out the innovations and shortcomings of this article.In the second part,this article first introduces the concepts of ownership,equity liquidity,equity concentration and equity checks and balances,and that are highly relevant to this article.Then it discusses the status quo of property rights reform of state-owned enterprises in China and corporate governance mechanism.It is pointed out that,in general,the property rights reform of China's state-owned enterprises can be divided into four important stages.There are a large number of state-owned enterprises that have carried out property rights reform in China,and they are mainly based on mixed ownership reform.At present,there are two major problems in the reform of state-owned enterprises' property rights.First,the extent to which different types of state-owned enterprises apply property rights reform has not yet been determined.Second,after the reform of state property rights,the reforms of other governance mechanisms within the company failed to follow up in a timely manner.Next,this article reviews the domestic and foreign literature on the nature of property rights and corporate performance,the concentration of equity and corporate performance,the structure of property rights and corporate governance mechanisms,and the current state of mixed ownership reform of state-owned enterprises and finds that there are many researches related to property right structure and company performance,but few researches on property right structure and corporate governance mechanism.At the same time,both types of research are mainly based on empirical research,and there are few typical case studies.At the same time,among the few case studies,most cases have only studied the process of a mixed ownership reform of a case company and its impact on company performance,and lack of research on a company's complete property rights change path and the corresponding adjustment of governance mechanism.Therefore,from this perspective,this paper introduces the case of Gree.It adopts research methods such as literature research method,case study method,event research method,and qualitative and quantitative methods,based on signal transmission theory,principal-agent theory,property rights theory,and stakeholder theory.This paper hope to enrich domestic case analysis literature on this aspect.In the third part,this paper first introduces the basic situation of Gree,and then sorts out the road of property rights reform of Gree in the past 25 years.In the fourth part,this article delves into the three most important property rights reforms of Gree,and analyzes in detail the timing of its reform,the choice of reform targets,the company's equity structure after the reform,the board of directors,the supervision mechanism,the incentive and restraint mechanism,and the dividend policy etc.This paper also analyzes the market response of investors in each reform and the performance of the company after the reform.Finally,this article summarizes the characteristics of state-owned enterprises that have successfully selected the "Gree" type property rights change path from the macro and micro perspectives.In the fifth part,the corresponding conclusions and enlightenments are put forward.The main research conclusion of this article is that Gree can successfully complete its property rights reform,which is assisted by the internal and external environment of the company.Specifically,in terms of the macro environment: First,the company's property rights reform is in the general direction meet local government governance planning requirements.Second,the company's industry is a typical competitive industry.In order to better develop the socialist market economy in China,the withdrawal of state shares from competitive industries is an important step.Third,the local government has set a sufficient inspection period to allow the company to form a good foundation for property rights reform.In terms of the company's internal environment,the company must be fully prepared for the cessation of the status of a state-owned enterprise.Specifically,first,the company's property rights reform has adopted a gradual reform rather than a radical one,and has experienced a sufficient running-in period.Second,the reform of supporting corporate governance mechanisms that followed in time after the reform of property rights.After the completion of the property right reform,the company's board of directors,the board of supervisors,incentive and restraint mechanisms,dividend policy and other corporate governance mechanisms should be rapidly reformed.Third,the company's corporate governance mechanism has effectively alleviated the agency problem of enterprises.Under the ownership structure without controlling shareholders and no actual controllers,if the company can have a senior management team that "sees as if it is their own business",it will greatly reduce the agency costs of the company,which will help maximize shareholders' benefits.Of course,the situation of different state-owned enterprises in the reform is also quite different.This paper only provides case studies based on Gree 's property rights reform.Other state-owned enterprises need to analyze the specific situation in the future property rights reform and find the most suitable road to reform their property rights.