Research On The Impact Of Mixed Ownership Reform On Corporate Financial Risks

The third plenary session of the 18 th CPC central committee stressed that the reform of economic system should be the focus of all the efforts to deepen the all-round reform.Simultaneously,the state-owned enterprise reform is the central section of national economic restructuring.Actively developing the mixed ownership economy has become an effective way to stick the dominant position of public ownership in the “new normal” economic.Meanwhile,it is also conducive to the enhancement of the vitality,competitiveness and influence of the state-owned economy.Iron and steel enterprises,as a representative industries with excess capacity and excessive leverage among state-owned enterprises,are the key targets of the mixed-ownership reform.For a long time,the achievement and effect of the mixed reform of state-owned enterprises are brought into sharp focus by the scholars.Among them,the performance and corporate value of the enterprises after the mixed reform have attracted much attention,while financial risk,an important indicator reflecting the operation quality of enterprises,tends to get overlooked.Therefore,from the perspective of financial risk,this paper makes a comparative study of the financial risk of steel enterprises before and after the reform and analyzes the impact of the reform on the financial risk of state-owned enterprises.This paper takes Chongqing iron and steel industry in China as the case research object.Here we use z-score financial risk early warning evaluation model,through the longitudinal contrasting of financial early warning value before and after the reform,to analyze the change of financial risk level of Chongqing iron and steel before and after the reform.For the mixed ownership reform of state-owned enterprises,conclusions are as follows: after the mixed change,Chongqing iron and steel introduced strategic investors to the enterprise,which have the synergistic effect.At the same time,the disposal of bad assets and liabilities makes debt fell sharply and improves the enterprise's solvency.The financial position of Chongqing iron and steel is out of the dilemma and the moves make the enterprise back to normal operation.Therefore,the mixed ownership reform can help state-owned enterprises effectively reduce their financial risks.This paper hopes to provide some advises and references for enterprises in financial difficulties through relevant research.In addition,the reform of Chongqing iron and steel will tend to boost the confidence of other state-owned enterprises for further reform and advance the reform process of China's state-owned enterprises.