Research On The Mechanism And Economic Consequences Of The Equity Carve-outs And Listing Of State-owned Enterprises

At present,the reform of my country’s state-owned enterprises is in the comprehensive deepening stage.In addition to adjusting the state-owned assets management system,realizing the mixed ownership reform from the perspective of enterprise property rights is the main task at this stage.At the same time,with the establishment of my country’s multi-level capital market and the implementation of the registration system,the reform of the market-oriented system of my country’s capital market has also made great progress.In this context,the State-owned Assets Supervision and Administration Commission issued the "Three-Year Action Plan for State-owned Enterprise Reform(2020-2022)" in 2020,emphasizing that the mixed ownership of stateowned enterprises in my country has entered a critical stage.At the same time,in response to the SASAC’s call for action,the China Securities Regulatory Commission issued "Several Regulations on the Pilot Program of Domestic Listing of Listed Companies Equity carve-outs Subsidiaries" at the end of 2019,providing a new way of thinking for the reform of mixed ownership of state-owned enterprises.However,whether this emerging means of capital operation can achieve the desired effect,whether it is really beneficial to state-owned listed companies to improve efficiency,realize the preservation and appreciation of state-owned capital,and how to meet the expectations of managers still needs to be researched by domestic experts and scholars and tested by the market.Shanghai Electric,as one of the first batch of large state-owned enterprises in my country to participate in and complete the practice of the new equity carve-outs regulations,has special research significance.This paper takes Shanghai Electric(601727)’s equity carve-outs of Electric Wind Power(688660)and its listing on the Science and Technology Innovation Board as a case study,and conducts research on the role of state-owned enterprises’ equity carve-outs and listing and the corresponding economic consequences.First of all,this paper summarizes domestic and foreign scholars’ path choices for my country’s state-owned enterprise reform,and sorts out the research on the mechanism of equity carve-outs and listing and its economic consequences.In the institutional background,by sorting out the reform goals of state-owned enterprises put forward in different economic backgrounds after the reform and opening up and the construction and development process of the capital market that complements them,we can gain a deeper understanding of the relationship between the reform of state-owned enterprises and the development and construction of capital markets in my country.The relationship between them,and use this to clarify the expectations of the state-owned enterprise reform and the equity carve-outs new regulations on my country’s current state-owned enterprise reform.On this basis,through the study of the operating conditions of the parent company and the subsidiary company of Shanghai Electric’s equity carve-outs and listing,as well as the combing of its reform process,a reasonable analysis of the motivation for this equity carve-outs is made.Finally,from the perspectives of corporate governance and resource allocation,this article sorts out the action path of the equity carve-outs and listing of electric wind power,and uses the SBM-DDF-GML model,event study method and BS model to analyze the impact of the equity carve-outs and listing.Quantitative analysis of the company’s operating conditions and equity value changes.Through research on the mechanism of spin-off and listing,it is found that equity carve-outs and listing affect the company’s operation and equity value through two aspects: corporate governance and resource allocation:(1)At the level of corporate governance,spin-off and listing mainly focus on equity checks and balances,internal board of directors Supervision and incentives,job incentives,and external supervision play a role;(2)At the level of resource allocation,the successful equity carve-outs and listing of Electric Wind Power has eased the financing of subsidiaries by adjusting the company’s financing channels,capital structure,and enhancing the liquidity of the company’s funds.At the same time,it also brings positive feedback to the allocation efficiency of Shanghai Electric Group’s internal capital market..In addition,the results of quantitative analysis with the help of various models show that:(1)After the equity carve-outs and listing,the R&D investment and R&D results of Electric Wind Power have been greatly improved,and on this basis,the operating efficiency at the group level has been improved.But at the same time,after using the SBM-DDF-GML model to measure it,the results show that there is still a certain waste of resources in the current R&D investment of the group,and the company has not produced R&D results equivalent to the input.(2)Through the calculation of the cumulative excess returns of individual stocks before and after the 5 event days related to the equity carve-outs and listing,the results show that the cumulative excess returns of investors in the market during the event window period are between 1% and 3%.It shows that market investors have a positive attitude towards the effect of this equity carve-outs,and shareholders’ wealth has obtained excess returns in the short term.(3)In the long run,the company’s equity value based on the B-S model has been growing at a growth rate of more than 10% until 2020.Affected by various factors such as bad debts of loans and impairment of assets related to Evergrande Group,its net profit suffered a large loss.As a result,the impact of the equity carve-outs and listing on its equity value has not been clearly reflected.Finally,this paper puts forward some suggestions of the author from two levels of government supervision and corporate governance.