Empirical Study On The Policy Burden And Firm Performance During The Switch Of Control Right Of SOEs

Policy burden on SOEs has been a very important issue in the reform and openness of China. Based on the switch sample of control rights of listed companies from 1999-2005 this paper studies the influence of policy burden on SOEs and their performance using positive method. The empirical results indicate that under the influence, after merger another SOE, the buyer SOE will burden more policy burden. So we can say that SOEs are still the tools of the government. SOEs are not become the owner of the market. Second, after the control rights are transferred, the more the new burden is, the worse the performance is. The results above indicate that policy burden can really bring negative influence on the SOEs. This paper studies the factors that influence the consequences of the reform of SOEs from the view of policy burden. It indicates the real and deep reason which can't be founded by study achievement of SOEs reform directly.