An Analysis Of The Motivation And Economic Consequences Of The Privatization Of Listed Companies

Privatization of listed companies is a common phenomenon in the capital market.As early as the 1950 s and 1960 s,privatization of listed companies appeared as a means of capital operation in the western developed capital market.Although China’s capital market started later than foreign capital markets,with the gradual development and improvement of capital market system,privatization of listed companies began to increase gradually.At present,China has mainly experienced two waves of privatization,one is the wave of privatization of state-owned listed enterprises caused by the reform of non-tradable shares in 2005,the other is the wave of privatization of China concept stocks after 2010.With the development of China’s economy and society,many large domestic group enterprises have been listed through the separation of different businesses,and often have multiple listing platforms,even across multiple capital markets.In 2020,Haier Group promoted the privatization of Haier Smart Home,its A-share listed company,to Haier Electric Appliance,its H-share listed company,and realized the listing of Haier Smart Home in Hong Kong stock market through introduction.Privatization realized the integration of Haier Group’s home appliance business listing platform,and integrated two listing subjects into one listing subject,which has a certain novelty,and it is of certain value to study the motivation and economic consequences behind privatization.With the help of case study,this paper takes Haier Smart Home’s privatization of Haier Electronics as the research object,and explores the following questions :(1)what are the motivations of stakeholders behind Haier Smart Home’s privatization of Haier Electronics?(2)What is the strategic development motivation behind privatization?(3)What are the economic consequences of Haier Smart Home’s privatization of Haier Electronics? Through the analysis of the above problems,in-depth analysis of the motivations and economic consequences of Haier Smart Home’s privatization of Haier Electronics,and put forward some practical suggestions for such privatization.Research and development found: From the perspective of the motivation of privatization,this privatization is in line with the interests of Haier Smart Home and Haier Electronics Shareholders and the group management,guaranteeing the interests of creditors and has received general support from shareholders including Haier Smart Home minority shareholders and Haier Electronics Planned shareholders.Moreover,this privatization is in line with Haier Group’s ecological brand development strategy of home appliance business.By breaking the original dual listing system of home appliance business,It not only helps to optimize the network organizational structure in the‘rendanheyi-2.0’mode,but also effectively meets the needs of Haier Smart home and Haier Electronics business resource integration,and also helps to improve the strategic and business coordination ability of both sides.From the perspective of economic consequences,although the privatization plan has gained positive feedback from investors in the capital market,there is still a large space for optimization of some financial indicators,and internal integration after privatization still needs to be strengthened to improve operational efficiency and reduce the period rate level.In this regard,this paper puts forward the following suggestions :(1)the privatization plan should take into account the interests of minority shareholders and creditors;(2)Privatization choice should be based on the needs of strategic development;(3)The internal coordination and integration after privatization is the key to the success of privatization.