Research On The Motivation And Effect Of Introducing Strategic Investors Into Yongxing Materials

With the continuous improvement of the national economy,China ’s steel industry is developing rapidly,and triggered a series of changes in the domestic steel market.China ’s steel industry is no longer pursuing the improvement of scale level,but based on the existing production capacity,through internal structural adjustment,improving the concentration of the iron and steel industry,and constantly climbing to the high end of the iron and steel industry chain to achieve high-quality development of China ’s iron and steel industry.In order to keep up with the development trend of the industry,more and more enterprises begin to seek cooperation,introducing strategic investors is a good way.Strategic investors can not only bring abundant funds,excellent scientific research ability and advanced management experience to enterprises,but also help to improve the corporate governance system and enhance the market value of enterprises.As the main force in the market economy,the private economy undertakes the mission of prospering the urban and rural economy.At the same time,it plays an important role in absorbing employment and creating taxes.The State Council has formulated a series of policies to encourage private enterprises to transform and upgrade,optimize and reorganize,and cultivate more world-class enterprises with global competitiveness.Inspired by national policies,more and more private enterprises have taken the pace of introducing strategic investors.This article chooses Yongxing materials as the research object of the case,and begins with the introduction of relevant literature on strategic investors and the theory applied;secondly,it introduces the background and implementation process of introducing Yongxing Materials into Jiuli Special Materials,and analyzes the motivation of introducing Yongxing Materials into strategic investors;then,it analyzes the reaction of the secondary market before and after the introduction of strategic investors by Yongxing Materials,the change of corporate governance level,and the change of management mode.After selecting the data of five years from 2017 to 2021 for vertical comparison,it is compared horizontally with the industry average.Through research,it is found that after the introduction of strategic investors,Yongxing Materials has optimized the ownership structure,enhanced the management level,improved the financial performance,and increased the enterprise value to a certain extent.Based on the above analysis,this paper has the following five implications : First,select strategic investors that can produce synergies with the company;the second is to carefully choose the timing of introducing strategic investors;third,strengthen the integration of strategic resources according to market research;fourth,the introduction of appropriate strategic investors helps to optimize the corporate governance structure;fifth,we should improve the enterprise innovation and incentive mechanism.