Research On The Path And Performance Of Mixed Ownership Reform In Competitive State-owned Enterprises

Mixed ownership reform is the accelerator of China’s new round of state-owned enterprise reform.In 2015,the State Council put forward the idea of implementing reform according to different levels and categories of SOEs,which is of great significance to the ownership reform of competitive state-owned enterprises which are large in number and wide in scope with a high degree of industry competition.Following the previous research and the new ideas which holds that the Mixed ownership reform should be carried out according to the level and category of SOEs,this paper mainly studies the following two aspects,taking the reform practice of Zhengzhou Coal Mining Machinery Group Co.,Ltd(hereinafter referred to as ZMJ)as an example.Firstly,the implementation path of the mixed ownership reform of competitive state-owned enterprises,and constructs an analytical framework for the study of the mixed ownership reform path;Second,the influence of mixed ownership reform on the business performance of ZMJ,and its internal mechanism.This paper first reviews the dynamic development process of mixed ownership reform in the past forty years in competitive state-owned enterprises the problems that need to be solve at this stage.After rethinking the relevant theories,we reviewed and summarize the literature in this field to build a theoretical framework to analyze the problem that SOEs face in the reform.Then,this paper studies the reform practice of ZMJ to summarize the reform path.In 2016,it was selected as one of the first pilot units of the "Double Hundred Action" by the State Council,becoming a model of mixed ownership reform in competitive industries,which is worthy of indepth study and learning.The conclusions of this paper are as follows.Firstly,the reform to increase shareholders with different ownership for competitive state-owned enterprises can be realized in six modes,namely,employee ownership,going public as a whole,foreign shareholders,merger and reorganization,stock option incentive,and strategic investors.Secondly,the results of the event study show that the mixed reform of Zhengzhou Coal Machinery has brought excess returns to shareholders in the short term,and the market has a good expectation for the future performance of the company which had become a mixed ownership firm in our case study.Thirdly,in terms of financial performance,the mixed ownership reform has improved ROE of ZMJ,and its overall financial performance is better than the state-owned enterprises that have not carried out the mixed ownership reform and private enterprises in the coal machine industry.Fourthly,in terms of innovation performance,after the mixed ownership reform,the R&D investment of ZMJ has increased significantly,and the number of high-level talents has also increased.Through mergers and acquisitions and the joining of external shareholders,the company has acquired a lot of patented technologies,especially key core technologies,and improved its innovation ability and efficiency.Fifthly,we find out how the mixed ownership reform affects firm performance.In our case study,the mixed ownership reform has optimized the corporate governance structure of the ZMJ,which lays the foundation for its correct investment and financing decisions.By going public as a whole,the enterprise group has reversed the situation of high debt and raised development funds.Market salary mechanism reform,reduce the agency cost of enterprises,fully mobilize the enthusiasm of management and employees;Managers actively explored the road of industrial transformation,and the innovation ability and profitability of the enterprise were greatly improved,realizing the strategy of diversified development.