Mixed Ownership Reform?Board Governance And Performance Of State Owned Enterprises

With the appearance of the disadvantages of the dominance of state owned enterprises,the mixed ownership reform,gradually as hot one,has been being one major reform method for state owned enterprises,even new trial units added each year.Examples in mixed ownership reform from Yunnan Baiyao enterprises to Chinese Unicom both revitalize enterprises and improve the performance and profits.while some in them only analyzed how equity structure will effect the enterprise performance or to the contrary how enterprise governance influence performance from the view of board governance.Yet,researches or studies combining the three factors are rare,thus they all can not well uncover the essential and core purpose of the reform.The mixed ownership reform of the state owned enterprises aims to decrease the the ratio of state owned shares by introducing non state owned capital especially private enterprises and strategic investors,which,on one hand,improve the equity restriction ration resulting in the change of equity structure contributing to the improvement of enterprise governance and performance,and on the other hand,due to the in born market-oriention of private enterprises,it also revitalizes the state owned enterprises.Thus the prominent strategic effects mixed ownership reform brings to the state owned enterprises is inevitable.This paper at first collect and sort out the relevant articles and investagate the background concerning mixed ownership reform,enterprises governance and enterpeise performance.Then based on the background and theoretical information,an example Yunnan Baiyao is analyzed carefully.Next this paper makes an empirical study based on the models and assumptions to make sure wheter board governance plays the intermediary role.In the last part,the assumption is proved,still,some limits and the future direction being put forward.This paper reviews the relevant articles concerning equity structure,board governance,and enterprise performance leading to a conclusion that board governance plays a intermediaey role between equity structure and enterprise performance in governing the enterprise.