Research On The Motivation And Performance Of State-owned Enterprises Merging Private Enterprises

Under the guidance of the mixed ownership policy,the mixed ownership reform of state-owned enterprises has begun to accelerate,and mergers and acquisitions have become an important way for state-owned enterprises and private enterprises to integrate professionally and strategically,and promote the mixed ownership reform.On the one hand,state-owned enterprises enhance their competitiveness and optimize the structure of the state-owned economy through mergers and acquisitions of private enterprises;On the other hand,private enterprises also transfer their equity to state-owned enterprises to achieve their sustainable development when facing crises.However,in this new cycle of mixed reform,there are also many problems in mergers and acquisitions,such as a shortage of funds for mergers and acquisitions,the loss of state-owned assets caused by poor integration of resources,and high operational pressure.These problems can lead to the final results of mergers and acquisitions that are not significant or even have negative impacts.Therefore,there are many disputes about whether mergers and acquisitions can further promote the accelerated evolution of China’s state-owned enterprise hybrid reform,which is worth further research.This article selects the case of Shanghai Electric’s acquisition of Tianwo Technology.Firstly,based on synergy theory,scale effect theory,and market power theory,it analyzes the motivation of the merger between Shanghai Electric and Tianwo Technology in the context of mixed ownership reform;Secondly,it further explores the effects of mergers and acquisitions from three aspects: short-term stock market reaction,financial performance,and non-financial performance;Finally,based on the short-term and long-term effects of this merger and acquisition as well as the existing problems,relevant suggestions are proposed.This study finds that after the merger of Shanghai Electric and Tianwo Technology,the market reaction is good in the short term,with improved financial performance and positive improvement in non-financial performance.However,the overall effect is not ideal in the long term.To achieve a better merger effect,state-owned and private enterprises need to ensure the matching degree between the merger parties,delineate clear business boundaries,and strengthen the integration of business activities and financial management.It is expected that this article will provide useful reference for similar state-owned enterprises to merge with private enterprises in the new cycle of hybrid reform,and help state-owned and private enterprises achieve long-term development in the hybrid reform and achieve the expected goals of mergers and acquisitions.