The Influence Of Mixed Ownership Reform On ZOOMLION's Performance

In the third Plenary Session of the 18th CPC Central Committee,the Communist Party of China proposed "to actively develop the mixed ownership economy of the cross shareholding and integration of state-owned capital,collective capital and non public capital,allowing the mixed ownership economy to carry out enterprise employee stock ownership".This has made a more detailed description of the concept of "mixed ownership" proposed by the 15th National Congress of the Communist Party of China.Since then,the mixed ownership reform has been mentioned in an unprecedented political height and has been identified as an important breakthrough in the reform of state-owned enterprises.In 2014,the SASAC of the State Council named ZOOMLION as "a successful sample of the reform of the mixed ownership of China's state-owned enterprises" and advocated other enterprises to learn from them.This reflects that the reform of ZOOMLION's mixed ownership system is typical and worthy of further research and exploration.Based on the existing research results and the mixed ownership reform of ZOOMLION,this paper takes "the impact of the mixed ownership reform on the performance of ZOOMLION" as the core research content,and mainly answers two sub questions:(1)whether the mixed ownership reform improves the performance of ZOOMLION;(2)What is the intrinsic mechanism of the influence of the mixed ownership reform on ZOOMLION's performance?Firstly,this paper combed the reform of the mixed ownership system of the engineering machinery industry and ZOOMLION,as the basis for the follow-up analysis.Then relied on the DuPont analysis system to answer the first sub problem through the analysis of the core performance index ROE,and analyzed the second and third layer indexes of DuPont system to explored the driving force of ROE.On the one hand,it can determine the impact of the reform on which basic performance indicators,on the other hand,it can provide the thinking direction for the follow-up mechanism.Finally,this paper through the longitudinal comparison of the joint gravity and the horizontal comparison with similar enterprises to study the internal mechanism of the mixed ownership reform affecting ZOOMLION's performance from three aspects of corporate governance,enterprise investment behavior and enterprise financing behavior.,it answers second sub problems.The conclusons of this study are as follows:(1)The mixed ownership reform promotes the overall performance index ROE of ZOOMLION,and the performance of ROE is better than that of the non state-owned enterprises in the same industry.The promotion of ZOOMLION ROE is not at the expense of high leverage,thanks to the promotion of the profitability after the reform,but the asset turnover capacity has not been raised.(2)The internal mechanism of the mixed ownership reform affecting the performance of ZOOMLION is that the mixed ownership reform has optimized the corporate governance and laid the foundation for the correct investment and financing decisions;the imported strategic investors help the enterprises to invest in mergers and acquisitions,and the ZOOMLION profitability has been promoted after the merger and acquisition;the reform mode of the listing reversed ZOOMLION's high debt situation,ZOOMLION's equity financing preferences and equity financing convenience increased after the reform,stabilizing the financial leverage.The application value of this article is as follows:on the one hand,it can provide reference for the subsequent implementation of the mixed ownership reform in the reform path selection and the operation management of the company after the reform.On the other hand,the successful cases of the reform of the mixed ownership system of ZOOMLION help to strengthen the confidence of the other state-owned enterprises and help the government to promote the reform of state-owned enterprises.