Research On The Motivation And Effect Of JS Private Enterprises Introducing State-Owned Capital

Since the 18 th National Congress,SASAC has been closely following the strategic plan of the CPC Central Committee and the State Council to promote the process of mixedownership reform and promote the diversified and coordinated development of multipleownership economy under the general requirements of "improving governance,strengthening incentives,highlighting the main business and improving efficiency".Led by a series of hybrid reform policies,state-owned enterprises have achieved high efficiency and quality development by introducing non-state capital.Under the new round of mixed ownership reform,which emphasizes the "two-way mixed reform" model,some private enterprises have chosen to introduce state-owned capital to participate in the reverse mode of mixed ownership reform,through the "state-owned background + private enterprise management" model,thus promoting the high-quality development of private enterprises.In this policy guidance,some private enterprises began to choose to introduce state-owned capital to participate in the reverse mode of mixed ownership reform,through the "stateowned background + private business" mode,and thus promote the high-quality development of private enterprises.This paper takes the introduction of state-owned shareholders in the same industry by JS,an Internet service industry company,as an example.Based on the literature review and relevant theoretical elaboration,the motivation and effect of the introduction of state-owned capital by the case company are studied.First,we review the process of introducing stateowned capital into the case company and analyze the changes in JS’s shareholding structure,analyze in detail the motivation and integration measures of introducing state-owned capital into the case company,and explore the market response,financial effects and non-financial effects produced by the introduction of state-owned capital into JS for study.Through the above study,we found that(1)JS Company implemented the reverse hybrid reform based on three motivations,such as resolving the pledge crisis,exploiting business synergies and improving the governance structure.(2)In terms of market reaction,the abnormal return and cumulative abnormal return of the company after the announcement of introducing stateowned capital have increased,indicating that the market reaction of introducing state-owned capital is good and has been recognized by investors.(3)In terms of financial effects,the introduction of state-owned capital had a positive effect on the improvement of profitability,especially the return on net assets,which created more value for shareholders;with the credit enhancement from state-owned shareholders,JS broadened its financing channels,reduced debt financing costs,and optimized its capital structure;similarly,the introduction of stateowned capital significantly improved JS’s growth capacity,and the company broke through the development bottleneck,which highlighted its growth potential.At the same time,the restructuring of JS’s board of directors and supervisory board,the participation of stateowned shareholders in corporate governance,and the improvement of corporate operating efficiency.(4)In terms of non-financial effects,the introduction of state-owned capital into JS has resulted in stable R&D investment and improved R&D quality on the basis of maintaining the company’s R&D capability.JS’s introduction of state-owned capital in the same industry has enabled the company to gain resource advantages,bring into play business synergies,rapidly capture the market for new businesses,and expand its market share.At the same time,the introduction of state-owned shareholders optimizes JS’s governance structure,strengthens the supervision of the corporate governance,and effectively reduces agency costs.By exploring the effects produced by the introduction of state-owned capital in the case company,this paper provides reference at the micro level for other enterprises of the same type to draw on when implementing reverse hybrid reform,with a certain demonstration effect.