The Effect Of Mixed Ownership Reform On Zhongguo Jushi Finance In Research On The Impact Of Performance

As the leading force of the national economy,state-owned enterprises(SOEs)also serve as an important pillar of the socialist economy.In response to slower economic growth,mixed ownership reform is the key to rejuvenating SOEs and stabilizing economic growth.However,it does not mean that SOEs can improve their financial performance simply by carrying out mixed ownership reform.Most existing researches are empirical analyses to figure out the causality between mixed ownership reform and financial performance while fewer researchers set sights on th e influence mechanism.Such being the case,this paper takes well-reformed China Jushi Co.,Ltd.as the research object.By doing so,it is hoped to explore the influence mechanism of mixed ownership reform on financial performance.Based on existing research findings and the situation of China Jushi’s mixed ownership reform,this paper focuses on “the influence of mixed ownership reform on the financial performance of China Jushi” and delves into the following two questions:(1)Whether or not the mixed ownership reform improves the financial performance of China Jushi?(2)What is the mechanism underlying the influence of mixed ownership reform on China Jushi’s financial performance? This paper first uses financial data collected from the glass fiber industry to model the causality between mixed ownership reform and improved financial performance.Then,this paper adopts a case study and comparative analysis to analyze the mechanism underlying China Jushi’s improved financial performance.The findings are as follows:(1)Mixed ownership reform indeed improves the financial performance of China Jushi.(2)Mixed ownership reform diversifies the capital background of China Jushi at the shareholder level,thus giving birth to a professional,stable and efficient leadership.With the help of strategic investors,the leadership can complete the asset restructuring of parent and subsidiary companies.At a time when the company needs to make crucial decisions,the leadership is able to make and stick to the right decisions based on leaders’ own understanding of the industry and under the supervision of the Supervisory Board.To be more specific,those decisions include choosing overseas markets,investing in technological R&D and expanding production capacity by the use of financial leverage.Given that the introduction of strategic investors is in the wake of mixed ownership reform,it can greatly help China Jushi in terms of capital,restructuring of corporate assets,and development of overseas markets,thus enabling the company to develop rapidly and efficiently.As a result,China Jushi witnessed a rise in its financial performance.