Motivation And Performance Analysis Of The Nationalization Of Private Listed Companies

As an indispensable part of my country’s economic system,private enterprises have played a huge role in contributing tax revenue,increasing employment and promoting innovation and development.As the economic situation at home and abroad has become more and more severe,in recent years,the business of private enterprises in my country has been impacted in many ways,mainly including intensified market competition,more financing constraints and difficulties in corporate transformation,and corporate development is facing numerous obstacles.In November 2018,General Secretary Xi Jinping attended the private enterprise symposium.Although he clearly proposed to create a policy environment suitable for the development of private enterprises and encourage private enterprises to break through and innovate boldly,some private enterprises are still in trouble.In order to alleviate the real dilemma of private enterprises,many private listed companies implemented nationalization reforms and transferred control to state-owned shareholders through equity transfers,which triggered a heated discussion of "the state advances and the people retreat".In 2018,my country’s private enterprises began a new round of nationalization reform,and they sought help from state-owned enterprises during the development bottleneck period.State-owned enterprises have advantages in capital,technology,management,etc.Nationalization reform can provide a large amount of financial support for private enterprises,improve the ownership structure of private enterprises,optimize corporate governance mechanisms,increase operating efficiency,expand market share,and enhance core competitiveness of enterprises.This article intends to select the case of the nationalization of Dongjiang Environmental company to study the nationalization of private listed companies.Dongjiang Environmental company has been rooted in the environmental protection industry for 20 years and changed from a private enterprise to a local state-owned holding company in 2016.The environmental protection industry is a strategic emerging industry,and Dongjiang Environmental company has been nationalized earlier and has a higher position in the environmental protection industry.It is a leading enterprise in the hazardous waste industry.It is quite representative and has practical significance for studying the nationalization of private listed companies.Based on the case of the nationalization of Dongjiang Environmental company of a private listed company,this article first starts from the research background and research significance,summarizes the views of domestic and foreign scholars on the motivation and performance of the nationalization of private enterprises in the past years,and combs the research ideas of this article.And method.Then it introduces the relevant theories of nationalization,including the concept and main methods of nationalization,the motivation of the nationalization of private listed companies,and the performance evaluation method,focusing on the synergy theory,scale economy theory and political connection theory.Secondly,taking the nationalization of Dongjiang Environmental company as an example,the basic situation of Dongjiang Environmental company and Guangsheng Company is introduced separately,and the process of nationalization of Dongjiang Environmental company is carefully sorted out,and the characteristics of Dongjiang Environmental company nationalization are analyzed and summarized.Then combined the data to analyze the reasons for the nationalization of Dongjiang Environmental company,and analyze the reasons why Dongjiang Environmental company chose Guangsheng Company and the reason why Guangsheng Company became shareholder Jiang Environmental Protection from two perspectives.Then,by analyzing the market performance,financial performance and non-financial performance of Dongjiang Environmental company before and after the nationalization,it is found that after the nationalization of Dongjiang Environmental company,not only the company’s market performance and financial performance data have been significantly improved,but also the company’s business market scale,Scientific research and innovation capabilities and corporate credit ratings have also been greatly improved.At the same time,it is concluded that performance improvement has benefited from grasping the appropriate time for nationalization,selecting appropriate state-owned enterprises,and synergies that have played an important role.Finally,through the analysis of the motivation and performance of the nationalization of Dongjiang Environmental company,a private listed company,it was discovered that after the nationalization of Dongjiang Environmental company,Guangsheng Company helped it improve its strength in financing,market development,scientific research and R&D,etc.;optimized the governance structure of Dongjiang Environmental company Company;By integrating the resources of both parties to play a synergistic effect,companies can deepen cooperation,share resources and management experience;and after Dongjiang Environmental ’ s announcement of the equity transfer,the market has produced a good response and sent a positive signal to the market.Profitability,operating ability,debt servicing ability and growth ability have all played a role in promoting,effectively promoting performance growth.The above research conclusions provide practical reference for other private listed companies to implement nationalization in the future,and provide case support for the theoretical research on the nationalization of private listed companies in my country.It also enlightens that other private listed companies can improve company operations by introducing state-owned shareholders for nationalization reform;the choice of state-owned shareholders should also be based on the needs of both parties;at the same time,strengthen their own strength,form core competitiveness,and attract state-owned enterprises;in the process of nationalization We must also attach importance to the integration of resources between the two parties to avoid failure.