Analysis On The Motivation And Effect Of Introducing State-owned Capital Into Private Enterprises

Since the Third Plenary Session of the 18 th Central Committee of the Communist Party of China,China has proposed an economic policy of continuously deepening the reform of mixed ownership,which has made significant contributions to promoting the improvement of China’s modern enterprise system and achieving the reform of China’s socio-economic system by integrating state-owned and non-state-owned capital.With the continuous promotion of mixed ownership reform,its connotation has extended from private enterprises participating in stateowned enterprises to state-owned enterprises investing in private enterprises.Private enterprises are an important force in promoting technological innovation and economic transformation and upgrading in China,playing multiple important functions such as providing employment,creating taxes,and maintaining social stability.However,private enterprises often face problems such as resource constraints,imperfect governance structures,and weak risk resistance in their business processes,which constrain their future development.In order to break the bottleneck of development,more and more private enterprises transfer part or all of their equity to state-owned enterprises,hoping to solve the above obstacles by virtue of the advantages of state-owned enterprises in resources,talents,management,etc.,so as to achieve their strategic goal of becoming bigger and stronger.Therefore,this thesis takes Yinghe Technology introducing SEC as the research object.Yinghe Technology is one of the leading enterprises in the lithium battery equipment industry.With the change of the industry environment,it faces problems such as limited resources,imperfect governance system,and increasing competitive pressure,which restrict its rapid development.After the introduction of SEC,the enterprises have effectively solved the above obstacles.Based on this,this thesis analyzes the motivation,effect and action path of introduction in this case,hoping to provide reference for other private enterprises of the same type to break through the development bottleneck.This thesis comprehensively uses various methods to analyze the case of Yinghe Technology introducing SEC.Starting from the research background and significance,this thesis summarizes the existing domestic and foreign scholars’ views on the motivation,effect,and mechanism of introduction of state-owned capital by private enterprises,and the research ideas and methods of this thesis.Then,it summarizes the relevant theories of introducing stateowned capital into private enterprises,mainly including the concepts of private enterprises and mixed-ownership reform as well as the path,reason and theoretical basis of private enterprises’ introduction of state-owned capital.Secondly,taking the mixed-ownership reform of Yinghe Technology as an example,this thesis introduces the basic situation of Yinghe Technology and SEC respectively,and carefully combs the actual introduction process.Next,it combines data to deeply explore the reasons for the introduction of SEC by Yinghe Technology from both external and internal perspectives.Furthermore,it analyzes the financial performance,non-financial performance,and market performance before and after the introduction of Yinghe Technology introducing SEC and is found the mixed-ownership reform has had a positive impact on the company.After the mixedownership reform,not only has the company’s various financial indicators improved,but also its innovation output and market development ability have significantly improved.At the same time,the mixed-ownership reform has been recognized by market investors,bringing a positive short-term market reaction for Yinghe Technology.Then,based on principal-agent theory,synergy theory,and resource-based theory,this thesis explores the reasons for performance changes caused by the mixed-ownership reform of Yinghe Technology.It is found that in terms of investment and financing,Shanghai Electric has improved the company’s R&D investment and efficiency by easing the financing constraints of Yinghe Technology and promoting strategic cooperation between its subsidiaries and Yinghe Technology,while helping it expand its capacity.In terms of governance,the entry of state-owned shareholders has changed the structure of the company’s board of directors,improved its capital and independence,and strengthened its supervisory and strategic service capabilities.In terms of political relevance,the mixed reform has increased the political relevance of Yinghe Technology,increasing its understanding of tax preferential policies,thereby reducing its tax burden.Finally,this thesis draws the following conclusions:(1)The introduction of state-owned capital has brought a positive short-term market reaction to Yinghe Technology;(2)The introduction of state-owned capital has brought good economic results to Yinghe Technology;(3)After the introduction of state-owned capital,Yinghe Technology has strengthened its comprehensive strength.Based on this,three enlightenments are proposed:(1)Private enterprises should choose state-owned shareholders that meet the development needs of both sides;(2)Appropriate management mode should be adopted after state-owned capital enters private enterprises;(3)The mixed-ownership reform of private enterprises should attach importance to the effective allocation and integration of resources.It is hoped that the research in this thesis can provide some reference experiences for the mixed-ownership reform of private enterprises in China,and further contribute to promoting the good situation of " both the stateowned and the private-owned enterprises advancing ".