Study On The Impact Of Foreign Ownership On Financial Performance Of JW Power Company

With the deepening of China’s reform and opening up policy as well as rapid development of China’s economy,the shares of listed companies in China are held by more and more foreign investors owing to a series of preferential policies that have been made to attract foreign capital to China for project investment.In recent years,the rapid development of the electric power industry in China also benefits from the introduction of foreign capital.Not only the sufficient funds,but also advanced technology and experience have been brought with the entry of foreign capital,which has promoted the technological transformation of backward equipment,bettered the internal ownership structure of enterprises,raised the level of corporate governance and effectively improved the performance of China’s electric power enterprises.However,every coin has two sides.Foreign ownership brings many adverse effects as well.On the one hand,the inflow of foreign capital does have some disadvantages.Whether foreign ownership can continue to have a positive impact on enterprise performance in this ever-changing economic environment has been both affirmed and questioned.What are the causes of foreign ownership in domestic enterprises? How does foreign ownership affect enterprise performance? Will foreign ownership have a positive or negative impact on enterprise performance? And How? All these issues must be studied against the current policies background.Thus,it is practically significant to study the impact of foreign ownership on enterprise and positive impact on reformation of electric power enterprise is expected.In this work,JW Power Company is taken as the research object to explore the foreign ownership of JW Power Company on the performance of specific changes through the analysis of foreign ownership motivation and impact performance path,by using of case study method,Comparative Analysis,etc.Firstly,this work summarizes the research literature on the relationship between foreign ownership and corporate performance at home and abroad;secondly,it defines the concepts of foreign ownership and foreign ownership,corporate financial performance,etc.,the basic theories involved in this paper are reviewed.On this basis,the paper analyzes the reasons for the introduction of foreign capital and the path of the impact of foreign ownership on enterprise performance.Finally,through the Comparative Analysis of Financial Performance Index data of JW Power Generation Company in2011-2019,such as debt repayment,profit,operation and development,etc.,it is found that the performance index data of JW Power Generation Company are better than the industry level and MD company.JW Power Generation Company has stronger debt paying ability,lower financial risk,faster growth of operating income,and has better profitability and development ability,foreign ownership has an obvious promoting effect on the financial performance of JW Power Company.In the end,the results were concluded according to the analysis and the suggestions for the actual development and existing problems of China’s power enterprises were also discussed.The results showed that,increasing financing channels,improving corporate governance structure and introducing advanced technology and management experience are the main reasons for JW Company to introduce foreign capital.Moreover,foreign ownership mainly affects the financial performance of JW Power Generation Company through influencing the diversification of ownership structure,improving corporate governance structure and improving technological innovation path.Through the analysis of financial performance data of JW Power Generation Company,it is confirmed that foreign ownership does bring good indicators to the financial performance of JW Power Generation Company and is conducive to the improvement of financial performance of JW Power Generation Company,which plays a positive role in promoting the long-term development of the company.Therefore,based on the reality of China’s electric power development,this paper puts forward some suggestions: In order to improve the enthusiasm of foreign investment in China’s power industry and ensure the investment income of foreign investment,China’s electric power industry should give priority to support new,clean and environmental-friendly energy projects,strengthen the management of utilizing foreign capital,improve the efficiency of using foreign capital,and actively promote the construction of the rule of law of foreign capital utilization in power projects.