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Central Enterprises Develop Mixed Ownership Economic Research

Posted on:2018-09-23Degree:DoctorType:Dissertation
Country:ChinaCandidate:S L HuangFull Text:PDF
GTID:1319330536467774Subject:World economy
Abstract/Summary:PDF Full Text Request
From August 2015,Beijing has published a series of policies relating to state-owned enterprise(SOE)reform,such as the Guidelines on deepening SOE reforms and the Guidelines on furthering diversified ownership in SOE.Those polices clarified the goal and principals,put forward main measures of encouraging social capital other than SOE to enter enterprises step by step,thus to make the SOE ownership more diversified,and improving the corporate governance and legal operation rules.Afterwards,SOEs in China began to diversify ownership via capital markets in order to bring more vigour into enterprises.Specific questions,such as whether ownership diversification is the solution to the difficulties faced by SOEs,are aroused.It is very important to study in this area now.This article focuses the corporate governance(CG)in central enterprises,and argues that control rights are the core of CG in SOEs.After summarizing the theories of enterprises,ownership,principal-agent theory,control rights,corporate group,parent-subsidiary companies and SOEs,this article provides a framework to study the ownership diversification in central enterprises.It consists the five parts:1)the core is control rights;2)the basis is the function classification;3)the contril rights origin is ownership;4)the implementary chanel is the board;5)the corporate value maximization is the goal.This article uses the methods of empirical and case study to check the variances of control rights in listed companies controlled by central corporations and their effects on coporate value.Then with relevant cases,the article specifies the implementary channels and risks of ownership diversification.As for the shareholder value maximization,the article argues that the control rights should satisfy the needs of enterprises.The central enterprises are classified into Type I commercial enterprises,Type II commercial enterprises and social enterprises.As for Type I,the goal of control rights is to maximaze the corporate value;as for Type II,to ensure the control of shareholders;as for social enterprises,to further ownership diversification and stimulate the enterprise.As the central enterprises show focused ownership structure,this article chooses the concentration of ownership,the ratio of the largest share and the separation of control rights and cash flow rights as the variables representing control rights.As the control rights are actually the rights of choosing board members,this article also chooses the independent directors and the chairman of the board also acting as CEO for the representing variables of control rights.The article chooses the listed companies controlled by central enterprises as the study sample,because this kind of enterprises is the best representative of market participants.The conclusions are as follows:First of all,the reform of SOEs has showed the movement of the enterprises control rights from the state capital to the non-state capital.Secondly,the listed companies in Chinahas showed the trend of ownership diversification,but the concentration of ownership in the first largest shareholder is still popular.Managerial ownership is still at the starting line.Independent directors have to work more to meet the expectation of policy makers.Thirdly,the company value is sensitive to the control rights.Such tries as to let out more control rights are welcome.In this phase,the control rights reform can acquire more benefits than costs.Finally,the ownership diversitication has to accompany with the investor protection system to guanrantee that the non-state capital could receive the fair conditions as the state capital.
Keywords/Search Tags:Corporate Governance, State-owned enterprise, Central enterprise, Control right, Parent-subsidiary company, Diversified ownership, Principal-agent Theory
PDF Full Text Request
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