Analysis Of The Motivation And Performance Of China Unicom's Introduction Of Strategic Investors

As the pillar of China's national economy,the state of operation of state-owned enterprises directly affects the development of China's national economy.At the same time,a series of problems such as unreasonable management mechanism,weak competitiveness,redundant personnel and uncoordinated input and output of state-owned enterprises have widened the gap between the operating efficiency of state-owned enterprises and private enterprises.In view of the positioning of state-owned enterprises and their own problems,it is necessary to implement a certain degree of reform of state-owned enterprises.The integration of state-owned capital and non-public capital helps different capitals of different ownerships to complement each other,improve governance mechanisms,improve the operational efficiency of state-owned enterprises and state-owned capital,enhance competitiveness and innovation capabilities,stimulate the vitality of state-owned enterprises,and promote state-owned enterprises.Long-term stable development.The introduction of strategic investors is an important means of reform of state-owned enterprises.Strategic investors refer to the advantages of capital,technology,management,etc.,which can improve the shareholding structure of invested companies,diversify their investment entities,improve operational efficiency,expand market share,and have long-term goals based on the development of invested companies.Domestic and foreign large enterprises that can have a major impact on the invested company.State-owned enterprises can obtain a large amount of financial support from the process of introducing strategic investors,optimize corporate governance mechanisms,improve management systems,and enhance their core competitiveness.This article takes China Unicom as a case enterprise,analyzes the motivation of introducing strategic investors and the changes brought by China Unicom in terms of financial performance and non-financial performance through the study of China Unicom's introduction of strategic investors,and draws some conclusions and conclusions.It is recommended to provide reference and reference for other state-owned enterprises in China that want to reform through the introduction of strategic investors.This paper uses case study method and financial index analysis method to study the motivation and performance of China Unicom's introduction of strategic investors from both theoretical and practical aspects.Firstly,the concept of strategic investors is defined from the narrow and broad aspects.Then the main characteristics of strategicinvestors are summarized.The internal mechanism of strategic investors' performance on corporate performance is summarized,including the development of direct financing channels to optimize capital structure.Optimize the corporate equity structure to reduce agency costs,improve corporate governance mechanisms,improve governance efficiency,and achieve superior resource integration to improve profitability.Then define two evaluation methods of performance,namely financial indicator analysis and non-financial performance evaluation.This paper not only evaluates the trend of China Unicom's performance before and after the introduction of strategic investors through the horizontal and vertical comparison of multiple financial indicators,but also uses non-financial indicators to measure the effect of introducing strategic investors.Then,based on corporate governance theory,strategic alliance theory and synergy theory and shareholder activism theory,this paper analyzes the case of China Unicom's introduction of strategic investors.The case first introduces the basic situation of China Unicom and its different strategic investors.Then it analyzes the motivation of China Unicom's introduction of strategic investors from four aspects,including the intensification of industry competition,prompting enterprises to accelerate the pace of transformation and development,raising funds for business construction,enhancing the core competitiveness of enterprises,forming a diversified shareholding structure,and modernizing corporate governance mechanisms.In-depth cooperation with strategic investors to promote the development of corporate innovation business.The case then details the background of China Unicom's introduction of strategic investors,China Unicom's choice of strategic investors,the specific process of introducing strategic investors,and the successful completion of the introduction of strategic investors.It also analyzes the resources of China Unicom and strategic investors.Integration with several aspects such as experience technology and shareholding structure.Then the paper selects data from the public information of China Unicom and the same industry annual report,and selects multiple financial indicators representing the change of enterprise capacity from the four different capabilities of debt repayment,operation,profit and growth.The financial indicators before and after the introduction of strategic investors by Unicom are compared horizontally and vertically.At the same time,it analyzes the effect of China's introduction of strategic investors from non-financial indicators such as market reaction.It is concluded that the introduction of strategic investors has improved the performance of China Unicom in the initial stage.Through the analysis of thereasons for the improvement of corporate performance after the introduction of strategic investors by China Unicom,it was found that China Unicom grasped the opportunity of introducing strategic investors,and the strategic investors introduced had leading advantages and the strategic investors introduced played a synergistic effect.With the introduction of strategic investors,China Unicom received funds and advanced technical support,while the governance structure was more perfect,and the effective integration of China Unicom and strategic investors played a synergistic effect.Therefore,the author believes that the introduction of strategic investors by China Unicom has already achieved initial results,which is conducive to the long-term stable development of China Unicom.Finally,the author made several suggestions.First,comprehensively examine strategic investors that match the company itself;second,focus on the integration of strategic investors;third,strengthen the company's own strength and enhance competitiveness.