| As a significant force for the healthy development of market economy,private enterprises have been facing troubles such as capital shortage and difficulty in borrowing and financing from financial institutions in the process of operation.The corresponding equity financing,due to the capital market noise and high degree of uncertainty,enterprises need to pay higher equity financing costs.In order to alleviate the capital difficulties of private enterprises and mitigate the higher financing costs,the government has introduced different policies and solutions to solve the difficulties of the private enterprises.Among the many ways to relieve the difficulties of the private economy,mixed ownership reform has received more and more attention.In the policy document on the reform of state-owned enterprises released by the government in2015,it is definitely identified that "state-owned shareholder should join private enterprises through all kinds of ways",which directly points out the necessity of mixed ownership reform by means of state-owned shareholder participation in private enterprises.Therefore,the paper will discuss the topic of how state-owned capital participation can solve the problems of private enterprises.This paper adopts an empirical research method to examine the observations from2007 to 2021 using non-financial private listed companies in Shanghai and Shenzhen A-shares as the main subjects.With the view of state capital participation,we explore whether the introduction of heterogeneous equity in private enterprises can play a role in providing relief to private enterprises.The conclusions show that the introduction of heterogeneous equity does play a significant role in private enterprises.It reduces equity financing costs of private enterprises.There are two main intermediary paths,the first of which is to improve the quality of information disclosure by private enterprises;the second is to reduce the operational risk faced by private enterprises.As far as the intermediary of "improving the quality of information disclosure" is concerned,the government’s voice has a greater influence on China’s capital market.State-owned enterprises,as the spokesperson of the government,can have a voice beyond their shareholding,improve internal governance and disclose standardized corporate information,even though they enter private enterprises with a lower shareholding ratio.At the same time,the introduction of state-owned capital by private enterprises as a major event will receive extensive attention and supervision from all sectors of society,such as:the media,the government,and analysts.This will make private enterprises take the initiative to regulate their business management activities,improve internal governance and disclose high-quality information.The improvement in the quality of information reported by enterprises helps to alleviate the information asymmetry problem,which will lead to a reduction in the risk premium compensation demanded by investors for private enterprises.In terms of the intermediary of "reducing business risks",private enterprises actively introduce state-owned capital as a way to bring their own resource advantages,state-owned shareholders bring financial resources to ease the financial pressure of private enterprises,effectively avoiding the business difficulties and bankruptcy of enterprises due to capital breaks,while state-owned shareholders carry other economic resources,providing opportunities for their supply,production and marketing activities,and promoting the development of private enterprises.On the other hand,the hybrid reform has increased the market acceptance of private enterprises as well as social recognition,weakening the discrimination of the market against private enterprises,lowering the threshold of key industries for private enterprises,private enterprises have the opportunity to enter the monopolistic nature of the industry with excessive profits,which in turn helps to improve corporate performance.The easing of financing constraints and the improvement of revenue-generating capacity are conducive to the stability of business activities,which in turn helps to reduce the business risks of enterprises.The level of business risk is related to the amount of income received by shareholders.As the risk of private enterprises decreases,outside investors will be willing to pay a premium for this,which will help reduce the cost of equity financing.After examining the basic relationship between private enterprises’ hybrid reform and equity financing costs and the mediating mechanism,this paper further delves into the heterogeneity of the relationship under different contexts of private enterprises’ internal governance level and external governance environment.After rigorous theoretical analysis and empirical testing,this paper finds that the basic findings of this paper are more significant when the internal controls of private enterprises are weak.Meanwhile,when private enterprises are subject to weak external government intervention and the legalization level of the region is low,the effect of economic resources brought by state-owned shareholders on equity financing cost is more significant by reducing the operating risk of privately owned enterprises.From the point of reverse hybridization,state-owned shareholders used as a relief party to fully integrate the advantages of different property rights capital by injecting into listed private enterprises,are providing fertile soil for the progress of private enterprises,boosting the rapid development of private economy,promoting the win-win solution and common development of enterprises of all types of ownership,and providing a scientific basis for the equity integration process of Chinese enterprises. |
