Analysis On The Motivation And Effect Of Introducing Strategic Investors Under The Background Of Mixed Reform Of State-owned Enterprises

In recent years,affected by the downward pressure of the economy,the shortcomings of state-owned enterprises,such as insufficient efficiency and imperfect corporate governance mechanism,have become increasingly prominent.In order to meet the needs of the socialist market with Chinese characteristics,promote economic development and constantly liberate the productive forces,at the same time,strategic investors,as one of the stakeholders,often hold a large proportion of shares and hold shares for a long time,It can effectively consider the long-term development of enterprises,reduce short-sighted behavior and obtain long-term benefits.Therefore,the introduction of strategic investors has become one of the important ways of mixed ownership reform of state-owned enterprises.As one of the old state-owned enterprises,HAGG has ranked first in the market share of China’s gear industry for many years.It has been involved in many fields and a wide range of fields.However,due to the sluggish overall environment of the machinery industry and the low operating efficiency of the company,its operating performance has not reached a satisfactory level.Therefore,the controlling shareholder of HAGG announced in November 2018 that it planned to transfer part of the equity of HAGG to introduce strategic investors,and successfully signed relevant agreements with the strategic investor Hangzhou Guangfa Technology Co.,Ltd.in July 2019 to successfully introduce strategic investors.Through its high management level and the re-election of the board of directors and board of supervisors of HAGG,strategic investors have successfully helped HAGG improve its business performance and enhance its competitiveness.On the basis of reading the relevant literature on the reform of mixed ownership and the introduction of strategic investors at home and abroad,this thesis analyzes the case of HAGG,and analyzes the motivation and performance of its introduction of strategic investors,so as to draw the case conclusion and Enlightenment of this thesis.This thesis studies from the following six parts.The first part is the introduction.This part mainly introduces the background and significance of mixed ownership reform in China or by enterprises,and combs the literature from three aspects: the path,motivation and effect of mixed ownership reform.The second part is the theoretical overview of this thesis,which provides theoretical support for the conclusion of this thesis.This part mainly introduces the connotation,motivation and path of the mixed ownership reform of state-owned enterprises,and introduces the concept and characteristics of strategic investors.At the same time,this thesis also analyzes the impact mechanism of strategic investors on enterprise performance from three aspects: ownership structure,corporate governance and obtaining synergy,and briefly describes the theoretical basis of this thesis.The third part introduces the case of introducing strategic investors into the mixed ownership reform of HAGG,through the introduction of HAGG and strategic investors,and the internal and external environment and process of HAGG before the mixed reform.The fourth part introduces the motivation of introducing strategic investors from both internal and external aspects.The fifth part is the changes of market reaction,financial performance and corporate governance level after the introduction of strategic investors.It is found that after the announcement of the introduction of strategic investors,HAGG has stabilized the market expectation,steadily improved its solvency,operating ability,profitability and growth ability,and optimized the corporate governance level of HAGG,so as to improve its performance level.The sixth part is the conclusion and Enlightenment of this thesis.After the introduction of strategic investors into HAGG,it has a positive impact on its business performance and corporate governance.At the same time,in the mixed reform,we need to pay attention to the interests of both state-owned enterprises and strategic investors to achieve a win-win situation.This thesis mainly uses the methods of literature research,case study and comparative analysis of financial indicators.On the basis of reading relevant literature,this thesis takes HAGG as a case study,compares the financial indicators between itself and the same industry before and after the mixed reform of HAGG,and draws the following conclusions.After strict restrictions and prudent selection of strategic investors,HAGG has formed a certain synergy with strategic investors,Through the integration of resources with strategic investors and the optimization of its corporate governance mechanism,its performance has been improved,which has changed the situation of low profit and low growth rate,realized the growth of profit,improved its competitiveness and enhanced the vitality of state-owned capital.Therefore,in the future mixed ownership reform of state-owned enterprises,when selecting strategic investors,state-owned enterprises should choose enterprises suitable for themselves,analyze their own advantages and disadvantages with strategic investors,realize the complementarity of resources,and actively give full play to the vitality of non-state-owned capital of strategic investors,so as to optimize the corporate governance mechanism and improve the disadvantages of corporate governance of state-owned enterprises,pay attention to the interests of both itself and strategic investors,so as to achieve a win-win situation.