The Relationship Between SOE Hybrid Reform And M&A Performance

M&A can help enterprises achieve strategic goals such as optimizing resource allocation,divesting backward production capacity and enhancing market capability,while M&A performance is a reflection of the quality and effectiveness of M&A.The report of the 20th CPC National Congress pointed out that "deepening the reform of state-owned capital and state-owned enterprises,accelerating the optimization of the layout and restructuring of the state-owned economy,promoting state-owned capital and state-owned enterprises to become stronger,better and larger,and enhancing the core competitiveness of enterprises" and"improving the modern enterprise system with Chinese characteristics,promoting the entrepreneurial spirit,and accelerating the construction of world First-class enterprises",two short sentences,reflecting the country’s firm attitude and determination to the reform of mixed ownership of state-owned enterprises,the idea of which is consistent with the 19th National Congress report.The reform of mixed ownership system of state-owned enterprises has been an important issue in China’s economy,and the task of deepening the reform of state-owned enterprises has been emphasized in several economic conferences of the central government.In this context,how to improve the level of M&A performance is the key for state-owned enterprises to achieve leapfrog development.Therefore,it is necessary to study the M&A performance of SOEs.This paper argues that the introduction of non-state shareholders is very important for the improvement of M&A performance of SOEs,and many scholars have also done research on this,but this paper thinks further on this basis and argues that the original state-owned shareholders should also be taken into account when studying why the introduction of non-state shareholders will improve M&A performance,as non-state shareholders pursue economic benefits more than state-owned shareholders and have talent advantages,but are not as good as state-owned shareholders in terms of resource acquisition Non-state-owned shareholders pursue economic efficiency more than state-owned shareholders and have talent advantage,but are inferior to state-owned shareholders in terms of resource acquisition,while state-owned shareholders have absolute advantage in terms of resource acquisition although their decision-making efficiency is inferior to that of non-state-owned shareholders.Therefore,this paper argues that it is more reasonable to study the improvement of M&A efficiency of state-owned enterprises from the perspective of equity diversity.Therefore,the principal-agent theory and resource dependence theory are introduced to propose the hypotheses of this paper,followed by an empirical analysis with state-owned listed companies in China to verify the hypotheses proposed in this paper.Firstly,this paper selects the state-owned listed companies in Shanghai and Shenzhen A-shares from 2007 to 2020 as the sample for the study to analyze the impact of equity diversity on the M&A performance of state-owned enterprises,and the findings show that the correlation between equity diversity and short-term performance and long-term performance is positive,and the findings still hold after a series of robustness and endogeneity problems tests.In addition,this paper extends the study to find that both agency conflict and media attention affect the effect of equity diversity on the M&A performance of SOEs;for both short-term and long-term M&A performance,the effect of mixed ownership reform on M&A performance is better in SOEs with more severe agency conflict;for both short-term and long-term M&A performance,the effect of mixed ownership reform on M&A performance is better in SOEs with high media attention.For both short-term and long-term M&Aperformance,the effect of mixed ownership reform on M&A performance is better in SOEs with high media attention.Then,the paper introduces and analyzes the case of Shandong Energy Group’s hybrid reform,and finally,the paper makes some recommendations to provide policy suggestions to continue promoting the hybrid reform of SOEs.The research done in this paper can enrich the research on the effect of mixed ownership reform on the M&A performance of SOEs.From the perspective of equity diversity,this paper confirms that equity diversity has a significant positive effect on the improvement of the M&A performance of SOEs and provides some references on how to promote the mixed reform of SOEs in a more efficient way.