Research On The Governance Effect Of Mixed Ownership Reform Of State-owned Enterprises From The Information Disclosure Perspective

The socialist economy with Chinese characteristics takes public ownership as the main body.Under this circumstance,the development of state-owned enterprises,hereafter SOEs,becomes an important issue in economy.Since the reform and opening,Chinese SOEs have undergone several rounds of reform to improve operating efficiency.This round of reform aims to solve the corporate governance problem in SOEs and improve their internal vitality through mixed ownership reform.In this context,it is of great theoretical and practical significance to study the governance effect of mixed ownership reform of SOEs.Existing studies mainly explore the economic consequences of mixed ownership reform from the corporate level,lacking empirical evidence from the capital market level.It is important to evaluate the effect of mixed ownership reform of SOEs from the perspective of capital market.The capital market is not only market of capital,but also market of information.Information disclosure is not only the lifeline of the capital market,but also the concentrated embodiment of the governance level of listed companies.Based on this,it is necessary to conduct an in-depth study on the information disclosure governance effect of the mixed ownership reform of SOEs from the perspective of capital market,so as to provide evidence from the capital market for the study of the economic consequences of the mixed ownership reform of SOEs.This paper built the theoretical analysis framework based on internal corporate governance,external corporate governance,corporate governance structure as well as corporate governance mechanism.Further,three types of mechanisms,namely,incentive mechanism,checks and balances mechanism,De-administration mechanism,are extracted to investigate the effect of mixed ownership reform on the disclosure of information efficiency,timeliness and legal compliance.Based on the empirical studies of the listed A share SOEs during 2006-2018,this paper investigates information disclosure governance effect of the mixed ownership reform from three perspective,including information disclosure efficiency,timeliness and legal compliance.Firstly,this paper analyzes the influence of mixed ownership reform on the efficiency of information disclosure.Taking the stock price synchronicity as the proxy variable of information disclosure efficiency,this paper analyzes whether the reform of mixed ownership can promote the disclosure of firm-level characteristics information of SOEs,therefore improve the information disclosure efficiency of capital market.Secondly,the paper analyzes the impact of mixed ownership reform on the timeliness of information disclosure.This paper investigates whether the reform of mixed ownership can alleviate the "suppression of bad news" information disclosure in SOEs,therefore improve the timeliness of information disclosure in capital market.Thirdly,this paper analyzes the influence of the mixed ownership reform on the legal compliance of information disclosure.This paper investigates whether the mixed ownership reform can reduce the illegal behavior of enterprise information disclosure and improve the bottom line thinking of SOEs in information disclosure.Based on,we come to the following conclusions,First,during the mixed ownership reform among SOEs,the diversity of equity,the degree of equity integration and transfer of control rights can effectively reduce the stock price synchronicity of SOEs.The mechanism tests indicate that the mixed ownership reform reduces the stock price synchronicity through improving the compensation-performance sensitivity of corporate executives,the over-delegation of non-state-owned shareholders and the degree of corporate financing constraints.This shows that the mixed ownership reform can effectively prompt SOEs' corporate governance,therefore improving the information disclosure efficiency.The heterogeneity test shows,the governance effect of mixed ownership reform on information disclosure efficiency is more significant in enterprises with high CEO power,separation of the cash flow rights and control rights,monopoly industries and firms whose headquarters located in regions with high degree of marketization.Second,during the mixed ownership reform among SOEs,the diversity of equity,the degree of equity integration and the transfer of control rights significantly inhibited the "hoarding" of bad news,which improves the timeliness of information disclosure of SOEs.This shows that the mixed ownership reform has improved the opportunistic behavior of executives in information disclosure.The mechanism tests indicate that the mixed ownership reform of SOEs improve the timeliness of information disclosure through improving the compensation-performance sensitivity of corporate executives,the over-delegation of non-state-owned shareholders and the degree of corporate financing constraints.The heterogeneity test shows that,the governance effect of the mixed ownership reform on the timeliness of information disclosure is more significant in the enterprises with high CEO power,separation of the cash flow rights and control rights,monopoly industries and firms whose headquarters located in regions with high degree of marketization.In addition,the reform of mixed ownership further reduces the risk of stock price crash of enterprises.The results show that the mixed ownership reform not only improves the timeliness of information disclosure,but also reduces the occurrence of extreme risk events,which is conducive to the healthy and stable development of the capital market.Third,during the mixed ownership reform among SOEs,the diversity of equity,the degree of equity integration and the transfer of control rights have effectively suppressed the probability,severity and frequency of information disclosure violations in SOEs,therefore improved the legal compliance of information disclosure.The mechanism tests indicate that the mixed ownership reform of SOEs improve the legal compliance of information disclosure of information disclosure through improving the compensation-performance sensitivity of corporate executives,the over-delegation of non-state-owned shareholders and the political association of independent directors.Further tests show that,the improvement of the diversity of equity has significantly reduced the false record and general accounting mishandling in the information disclosure of SOEs.The improvement of the degree of equity integration has significantly reduced the delayed disclosure and general accounting mishandling.The heterogeneity tests shows that,the governance effect of mixed ownership reform on the legal compliance of information disclosure is more significant in enterprises with high CEO power,separation of the cash flow rights and control rights,monopoly industries and firms whose headquarters located in regions with high degree of marketization.Based on the research results,practical suggestions are put forward from the national level,market level and enterprise level respectively to provide useful reference for improving the information disclosure governance effect of the mixed ownership reform of SOEs.At the national level,the government should actively explore ways to de-administrate.The State Owned Assets Supervision and Administration Commission of the State Council(SASAC)should change from "managing the people" and "managing the affairs" to "mainly managing the capital".In addition,the government should also encourage the reform of SOEs in monopoly industries,strengthen their willingness and motivation to reform.Moreover,the government should also speed up the improvement of the legal protection system for equal property rights,therefore enhance the willingness of non-public shareholders to participate in the mixed ownership reform of SOEs.At the market level,on the one hand,the capital market should provide a favorable environment for equity integration.On the other hand,we need to speed up the marketization of regions and provide institutional guarantee for the reform of mixed ownership of SOEs.At the enterprise level,SOEs should flexibly choose approach to complete the mixed ownership reform,and actively improve corporate governance.On the one hand,it is necessary to make rational use of public listing,inward investment,outward investment,the establishment of capital investment and operation company as well as state-owned enterprise reform fund.The SOEs should determine the way of mixing and reform based on the characteristics of different enterprises.On the other hand,we should focus on optimizing the corporate governance mechanism,therefore improve the information disclosure of SOEs.