A Study On The Motivation And Economic Consequences Of Introducing Strategic Investors Into Shanghai Jahwa Under The Background Of Mixed Ownership Reform

In September 2015,the State Council issued the“Opinions on the Development of Mixed-Ownership Economy for State-Owned Enterprises”.The opinion pointed out:“The reform of mixed ownership system should be classified and encouraged for state-owned enterprises whose main business is in a fully competitive field to encourage non-state-owned capital to participate in or even hold shares.”Among the many ways to realize the reform of mixed ownership of commercial state-owned enterprises,the introduction of strategic investors generally improves the corporate governance mechanism while achieving equity diversification.But not all companies can“snap”after introducing strategic investors.Therefore,when commercial state-owned enterprises in the competitive field seek to withdraw state-owned shares by introducing strategic investors,the strategic investors introduced can lead the reformed state-owned enterprises to move forward better or they will do whatever they want for state-owned enterprises because of the lack of checks and balances of state-owned shares.It is worth exploring.This paper chooses Shanghai Jahwa as the research object because Shanghai Jahwa introduced strategic investors in 2011 to promote the adjustment of state assets to withdraw from the general competition field.This has a certain representative role in the case study of mixed ownership reform.Secondly,after Shanghai Jahwa introduced strategic investors,there was competition for control of strategic investors and state-owned enterprise management.This phenomenon is relatively rare in the reform of mixed ownership.This paper uses literature analysis to sort out the reform of mixed ownership and the introduction of relevant theories of strategic investors,and summarizes the possible motives and economic consequences of state-owned enterprises in the reform of mixed ownership and the introduction of strategic investors.Then use case analysis to analyze the motivation of Shanghai Jahwa for mixed reform and whether it achieves the desired effect.The study found that the introduction of strategic investors as the largest shareholder will compete for control,making the effect of the mixed reform greatly deviated from the expected goal.Then,the author analyzes the reasons for the deviation of the mixed reform effect and finds that the introduction of strategic investors to complete the state-owned shares withdrawal needs to improve the state-owned shares exit method to do equity design and select suitable investors.The conclusions of this paper are as follows:(1)The introduction of strategic investors has injected capital,brought resources and freed the former state-owned enterprises from the constraints of the state-owned system.Therefore,the introduction of strategic investors has played a certain positive role.(2)When the state-owned shares exited,the equity design was unreasonable,and the type of strategic investors introduced did not make the equity unbalanced,and the nature of the shareholders changed.That is to say,when strategic investors become the largest shareholder,they will have new corporate governance issues-control competition.Therefore,the way in which state-owned shares withdraw from the competition field should be considered and the choice of strategic investor types should be cautious.(3)Defects in the inherent governance structure of state-owned enterprises will lead to disputes over the proportion of equity,and the means of competing for control among small and medium-sized shareholders and board seats.The introduction of strategic investors does not necessarily improve the governance structure of the company.On the contrary,the defects of the governance structure are likely to become a weapon for strategic investors to compete for control.Studying the case of Shanghai Jahwa gives certain enlightenment to enterprises that are ready to introduce strategic investment to complete the mixed reform.At the same time,it supplements the existing theories of mixed ownership reform and strategic investors,and has realistic value worth exploring.Theoretical significance.