State-owned Property, Excess Labor And Enterprise Performance

With the advance of the wave of "privatization" in1980s, the study of state-owned property and corporate performance increasingly become a hot issue for academic research. However, the vast majority of existing studies are based on research in the normal environment, the study based on the special environment such as financial crisis is so rarely. But there is a chance for us to study the relationship between the state-owned property and corporate performance in external environment dramatic changes, with the outbreak of the global financial crisis in2008.In transition economy, there is a tradition for government to intervene in the state-owned enterprises in China, until now the problem of excess labor in Chinese state-owned enterprises is not fundamentally solved. Compared with the normal environment, the Government’s policy objectives, intervention goals and intervention there is such different in the environment of the financial crisis. Is the burden of excess labor of state-owned enterprises still serious in the environment of the financial crisis? The answer of this question is the main content of this paper.In this paper, we use the data of the Chinese listed companies, to study the relationship between the state-owned property, excess labor and the enterprise performance, in the background of the financial crisis broke out in2008. We look forward our study could deepen the understanding of the mechanism of action of the state-owned property under the financial crisis. The specific content of this paper consists of six parts:Chapter Ⅰ, in this chapter, we introduce the research background, purpose and significance of the article. However, the introduction of the main content, research methods and contributions is also included.Chapter Ⅱ, in this chapter, we explain the basic concepts of this paper. Furthermore, we analyzed the nature and characteristics of the state-owned enterprises. Finally, we conclude and summarize the existing research both at home and abroad.Chapter Ⅲ, in this chapter, we briefly review the institutional background of this study-the historical process of the reform of state-owned enterprises in China. Next, we analyzed the impact of the outbreak of the2008financial crisis on China’s enterprises. Afterwards, proceed from the existing theoretical studies, we analyze the relationship between the state-owned property, excess labor and the enterprise performance. Finally, we proposed the hypotheses of our study.Chapter Ⅳ, in this chapter, we select a suitable sample according to the purpose of the article. Then hypotheses were proposed based on the analysis in Chapter Ⅲ, afterwards we select the appropriate research variables and regression models were constructed.Chapter Ⅴ, in this chapter, we show the sample simple descriptive statistics firstly, including the overall sample of descriptive statistics, correlation analysis, and variables single factor test. Next, we revealed the regression results of the models constructed in Chapter IV, and the analysis verified the article hypotheses we proposed in Chapter III.Chapter Ⅵ, in this chapter, we systematically analyze and summarize the research process and conclusions of the article. Lastly, we also put forward some policy recommendations.The study of the existing literature on the relationship between the state-owned property, excess labor and the enterprise performance are based on research in the normal environment. But the study based on the special environment such as financial crisis is so rarely. In our study, we use the year2008to define the normal environment and the financial crisis environment. Finally, we study the relationship between the state-owned property, excess labor and the enterprise performance in the financial crisis environment, compared with the normal environment. The main conclusions of the study are as follows:Firstly, in the environment of the financial crisis, the state-owned listed companies hired more employees, compared with the non-state-owned enterprises. Therefore, the problem of excess labor in the state-owned listed companies is still senous. Secondly, in the environment of the financial crisis, the state-owned listed companies were provided with higher labor costs, compared with the non-state-controlled companies. Thence the state-owned listed companies possess with more employees burden. In addition, the nature of the "ultimate control" of the state-owned enterprises of also affects the burden of enterprises to take over. Which is the most serious, when the burden of the SASAC "ultimate control" of the state-owned listed companies, the companies are facing over excess labor.Finally, we found that excess labor is not a negative impact to ROA, but the burden of excess employees of state-owned enterprises is exacerbated by the reduction of the level of performance of state-owned enterprises must be enterprise performance.