Research On The Motivation And Financial Effect Of Equity Consolidation Reform Of Traditional "Time-Honored" Enterprises

Effective equity arrangement is the source of institutional power that fuels the development of enterprises and also the foundation of enterprises.In recent years,with the development and evolution of mixed ownership reform,equity consolidation reforms have also emerged.This thesis takes the traditional "time-honored brand" Lao Fengxiang as a case study to explore the motivation and financial effect of equity consolidation reform.First of all,on the basis of combing relevant literature and theories,this thesis analyzes Lao Fengxiang’s business history,predicament and reform process,and summarizes its motivation for carrying out equity consolidation reform.After analysis,under the influence of industry competition,weak development ability and shortage of funds,Lao Fengxiang started equity solidification reform to restart employee incentive mechanism,broaden marketing and financing channels,optimize governance structure,etc.Secondly,a reasonable financial effect evaluation system is established to analyze the financial performance and market effect of Lao Fengxiang’s reform by comparative analysis,factor analysis and event study.The results show that:(1)after the reform,Lao Fengxiang’s single performance,comprehensive performance and value have been improved to some extent;(2)After the event date,the stock price of Lao Fengxiang Co.,Ltd.rose in a short period;During the window period,the reform of Lao Fengxiang produced a high cumulative excess rate of return,indicating that the equity consolidation reform brought a positive market effect.Based on the above analysis,corresponding suggestions are put forward from two perspectives to promote the mixed ownership reform of state-owned enterprises.Specifically,enterprises should reasonably plan and design schemes before the reform,implement them strictly and prudently during the reform process,and give full play to the advantages of emerging investors and implement supporting reform schemes after the completion of the reform,so as to ensure the effectiveness of the reform.For the government,proper supervision and services can effectively promote the smooth progress of mixed ownership reform.Therefore,relevant departments should provide appropriate supervision and high-quality services before,during and after the reform.