The Influence Of State-owned Equity On The Enterprise's Value Creation Based On The Mixed Ownership Orientation

The relationship between equity structure and enterprise value has always been one of the important research directions in academia.State-owned equity as a special kind of ownership,and its value to the invested company's value has always been the focus of this research field.Exploring this issue in-depth,we will understand the operational behavior of the company from the perspective of the state-owned capital contributors,at the same time,it also a task for China to further advance the mixed ownership reform.The Third Plenary Session of the 18 th CPC Central Committee pointed out that “state-owned capital,collective capital,and non-public capital,all of these cross-shareholding and mutual integration of mixed ownership economy,are important forms of the basic economic system.” At the same time,it emphasize on “encouraging the development of non-public capital holdings.On this basis,in 2017,The 19 th Party Congress emphasized that it must uphold and improve the socialist basic economic system and distribution system in our country,consolidate and develop unswervingly the public sector of the economy,encourage,support and guide nonpublic economic development,to develop a mixed sector of the market based economy.The development of the reform and opening up for the past 40 years also proves that promoting the coordinated development of the public ownership economy and the nonpublic sector of the economy is an important weapon in the long-term development of China's economy.As the micro embodiment of China's promoting the mixed ownership economy in-depth,the reform of the mixed ownership structure of enterprise ownership structure has always been the focus of the whole society.The proposition of mixed ownership was put forward and studied in China in the late 1980 s.Academia is generally believed that the state-owned enterprises actively develop the mixed ownership by exerting system advantages of different ownership to make up for failure in state-owned enterprises,it is also a reason why the mixed ownership is important.In recent years,with the continuous advancement of stateowned and state-owned enterprise reforms in China,the relevant research in the academic community on this issue has demonstrated stronger effectiveness,and more emphasis has been placed on the actual guiding significance of research results on the operation of enterprises.At this stage,however,there are still some issues that cannot be ignored in the aspects of how to implement the mixed ownership reform in the process of state-owned holding companies.On the one hand,from the perspective of enterprises,there are problems with the diversification of the objectives of state-owned capital holding companies(especially state-controlled enterprises).On the other hand,from the perspective of advancing corporate mixed ownership reforms,the differences in the institutional forms of state-owned enterprises and private enterprises and the differences in the attributes of controlled capitals have constrained the effective promotion of the mixed ownership reform of enterprises.Therefore,how to scientifically and effectively promote the reform of mixed ownership of enterprises,realize the accurate quantification of stateowned capital investment,prevent the occurrence of rent-seeking phenomenon,and embody the principle of justice,fairness,standardization,and high efficiency have reality significance in theory and practice.The fundamental question in this paper is how the state-owned equity affects the value creation of the invested enterprise.In order to analyze this issue,this paper first reviews the status of state-owned capital holdings,the creation of corporate value,and the historical evolution of state-owned equity.Then,it focuses on property rights theory and resource-based theories,supplemented with the symmetry theory and effective market theory to establish the research framework of this paper.It is based on the shareholding of state-owned capital as the core,the dual objective function of stateowned capital as the starting point,the classification of enterprises with different attributes as the sample base,Level is the fundamental source of impact,the realization of the effective allocation of state-owned capital as the channel of influence,and the ultimate goal is to maximize the integrated value of the invested company.Firstly,this paper based on the perspective of state-owned investors,according to the requirements of state capital dual attribute(economic attribute and social attribute),combined with the property right theory,resource-based theory,used the method of theoretical analysis and derivation of state-owned capital investment,marginal equilibrium,and the corporate value creation relationship to combing,deduction and analyzing,which improved the existing problem of lacking theoretical derivation on this research.The research shows that the state-owned capital management can achieve certain social benefits(the income dissipation effect of stateowned capital)by sacrificing the economic opportunity return of reinvestment.State capital input to supplementary benefits for the enterprise,enhance the confidence of the creditors,to reach the company creditor's rights and the decrease of the cost of capital and financial flexibility,thus enhance the enterprise value creation ability.The value ability of the enterprise is closely related to the shareholding ratio of state-owned capital and private capital.In theory,there exists the optimal structure of state-owned equity based on the premise of maximizing the enterprise's ability to create value.Secondly,we conduct empirical analysis to focus on the two stages of the reform of the state-owned shareholding company's recent property rights(the period of mixed share reform and the current period of mixed ownership reform).In view of the phenomenon of short time span,the large number of companies involved,and the complex situation of the equity split share reform,the gray unbiased Markov model was used to empirically confirm the key index parameters affecting the equity allocation of the company,simplifying the modeling steps and improving model prediction accuracy.Thirdly,the nonlinear quantile regression model is used to test the impact model,and it is found that the effect of state-owned capital on the economic value creation of the enterprise through the changes in the ownership structure is a nonlinear “inverted U-shape”,and the structure is affected by the enterprise attributes and the impact of the ownership of the business.The relevant conclusions not only improve the reliability of the empirical results,but also provide a reference for the accurate measurement of corporate value.It also lays a foundation for the empirical design of the optimal structure of state-owned capital stocks.Finally,in accordance with the country's overall approach to promoting mixed ownership reforms in enterprises,the company will introduce social value creation indicators,and use factor analysis to construct a comprehensive value indicator function for state-owned capital holding companies,and then use the panel smoothing regression model respectively from the corporate ownership attributes.The impact of the ownership structure of the state-owned capital in the company(shareholding situation)on the creation of the company's comprehensive value was analyzed,and the threshold value,i.e.the optimal proportion of equity,was determined.The study found that stateowned equity has a significant role in promoting the creation of comprehensive value of the company;when the proportion of state-owned shares is within the threshold,the positive effect of state-owned equity is positive to the value creation of the company.In addition,state-controlled enterprises and companies whose main business is a local pillar industry are more sensitive to changes in the capital structure of China,and the trend of change is faster.This research idea provides a methodological reference for the further promotion of mixed ownership reform of different types of enterprises in the future,and also provides index support for accurately assessing the operating status of state-owned capital holding companies.The research results can provide the following suggestions for the future reform of the mixed ownership system of China's state-owned listed companies: 1.By Balancing the economic attribute and social attribute of state-owned capital,stateowned capital agents should resonably influence the enterprise production and business operation activities at all levels;2.Adopting different mixed ownership strategies to promote the reform basing on the property of enterprises and the characteristics of the industry;3.Establishing the mixed-owned enterprise's performance evaluation system scientifically and improving the enterprise incentive and restraint mechanism.