The Study Of Privatization On Chinese Listed Firms: From The Empirical Perspective

Chinese state-owned enterprises restructuring reform, especially privatization has been implemented for a long time, the government as the main sponsor plays a vital role in the reform processing. This article focuses on two aspects. Firstly, based on state-owned listed enterprises equity transfer events from 2003 to 1010, through the empirical analysis of some variables that may affect the privatization to test the current government motives to promote privatization:mainly from economic or political considerations. The research draws the following conclusions:(1) The government takes economic factors into consideration while reforming SOEs, the SOEs with bad performance will be their first choice for privatization; (2) The government will consider the asset size and strategy industry while choosing privatization object, there are also some political motives, smaller size, more likely to be privatized, however, the staff scale is not the main consideration; (3) compared with the un-transferred SOEs, the transferred SOEs with a weak past performance, but there is no significant difference between the scale and industry property, such reforms may be promoted by the overall trend of restructuring SOEs.Besides, in order to test whether the effects of privatization are consistent with motives to implement the reform. The article also takes listed SOEs which are privatized between 2003 to 2008 as sample, through detailed comparative analysis of two types of indicators of business performance and the burden, we examined the actual effects of privatization and found that:(4) In recent years, privatization of SOEs significantly increased production efficiency and profitability, and will reduce the fiscal burden of government, which be in line with the government's motives of improving performance; (5) Privatization of SOEs would bring some unemployment, because government does not give special consideration to employees before reform processing, this contradiction reflects the current reform shortages of SOEs reform. There was no significant change in liabilities before and after privatization. In addition, we make some further study on factors that may affect the privatization effect.This article is helpful to make a better understand of the government's motive of privatization and the main effect of the reform. And through the contrast between them to find the present situation and the dilemma of SOEs privatization, then provides a reasonable theoretical and empirical basis for correct assessing Chinese SOEs Reform and finding the definite future reforming direction.