The Influence Of Diversified Shareholding On The Reform Of State-owned Retail Enterprises

The retail industry is the last link in the circulation of commodities,closely related to our daily lives,and has a very significant supporting role in the circulation of commodities.It is the guiding industry of the national economy.In recent years,with the continuous in-depth development of China’s Internet technology,and the rapid rise of online retailing,together with the rise in physical store rents,the rising cost of utilities,and the increase in employee salaries,the traditional retail industry is facing severe challenges.Stores,supermarkets and other formats often appear to close stores.How to make the traditional retail industry get rid of the difficulties of internal and external development and promote the healthy development of retail enterprises is an important part of the article research.Equity diversification is an important method for the reform of state-owned enterprises in China.Its ultimate goal is to promote state-owned enterprises to establish and improve modern enterprise systems,and to adapt to the needs of the new situation of marketization and internationalization.State-owned retail enterprises have a large share in China’s retail industry,and they all have certain representations in terms of their scale of development,competitiveness,and the number of retail listed companies.The development of state-owned retail enterprises has a direct impact on the overall level of development of China’s retail industry;further advancement of multiple reforms of state-owned retail enterprises will help establish a modern enterprise system and improve the governance system of retail enterprises,making state-owned retail enterprises bigger,stronger and more developed.Become a world-renowned retail company.This article first sorts out the literature related to equity diversification,and summarizes the theory and status quo of diversification of equity in retail listed companies.Based on the theory of commission-agent theory,control rights theory and equity checks and balances theory,we further explored the function mechanism of equity diversification on improving the performance of state-owned retail companies,thereby promoting the healthy development of state-owned retail enterprises.And using the panel data of retail listed companies from 2003 to 2016,from the two perspectives of the overall retail enterprise and the sample retail sample,the author analyzes the diversification of equity and empirically tests the retail company’s operating performance.In the process of empirical research,first test the stability of the selected data;then use the static,systematic and differential GMM method to explore the reform of state-owned retail enterprises based on the indicators of equity concentration and equity balance of retail listed companies.The impact,as well as the robustness test of the empirical results.The results of the study show that:(1)Large-shareholders in the retail company’s shareholdings are conducive to improving the company’s operating performance,showing an inverted "U" relationship that rises first and then declines;and moderately high concentration of ownership in retail enterprises can be significant.The high level of retail business performance,but the concentration of ownership should not be too high,otherwise it will reduce the level of performance of retail enterprises.(2)According to the sample division of the nature of retail enterprises’ equity,it is found that the operating performance of state-owned retail enterprises is significantly higher than that of private retail enterprises;in the process of the reform of equity diversification of state-owned retail enterprises,a higher degree of ownership concentration should be maintained,ie State-owned shares must occupy a higher proportion.(3)In the aspect of equity checks and balances,the role of private retail companies over corporate performance is better than that of state-owned retail enterprises.This may be due to the slow reform of the equity diversification of state-owned retail enterprises.The equity balance mechanism helps improve the internal governance mechanism of retail enterprises.Can improve the retail business management and management level.Finally,based on the empirical results of the reform of state-owned retail enterprises based on equity diversification,this paper puts forward the following suggestions: In the process of reform of equity diversification of state-owned retail enterprises,appropriate concentration of equity should be maintained;full play should be given to the mechanism of checks and balances of equity to the corporate governance system.To improve the performance of state-owned retail enterprises;encourage more non-state capital to enter and develop mixed-owned retail enterprises.