A Study On The Impact Of Introducing State-owned Capital To Meiya Pico On Corporate Performance

As the mixed ownership reform is further deepened,it has been clarified in the official document of China’s central government that state-owned capital is encouraged to engage in non-state-owned enterprises in various ways.The reform has shifted from the introduction of private capitals to state-owned enterprises in the early period to the mutual introduction as cases of “reverse reform of mixed ownership” that state-owned capital was introduced to private-owned enterprises based on business coordination started to emerge,so it will be one important direction of reform.At present,no consensus has been reached on the effect of introducing state-owned capital to private enterprises.Therefore,the paper cites Meiya Pico,an enterprise that is listed as “Demonstration Enterprises for Technological Reform” by the State-owned Assets Supervision and Administration Commission(SASAC),as a case to study the following questions: What were the motivations for Meiya Pico to introduce state-owned capital? How did the introduction of state-owned capital impact the performance of Meiya Pico?The theoretical foundation of the paper includes the Signal Transmission Theory,the Resource-based Theory,the Principal-agent Theory,etc.Based on these theories,the analytical framework of the impact path of introducing state-owned capital on the performance of private enterprises is constructed.In addition,the research method of case studies is used with which Meiya Pico is cited to analyze its motivations for introducing SDIC Intelligence,the specific impact path of SDIC Intelligence on Meiya Pico,and its influence on Meiya Pico’s performance in the market,finance,management,and innovation.The major findings after the analysis of Meiya Pico are as follows: Firstly,the main motivation for introducing SDIC Intelligence to Meiya Pico was to conform to the national calls,follow the industrial development trends,and solve the internal problems.Meanwhile,the two enterprises were highly consistent in their businesses and concepts,so the reverse reform of mixed ownership was a science-based choice to satisfy the development needs of both sides.Secondly,SDIC Intelligence improved the performance of Meiya Pico mainly by alleviating financial constraints,providing heterogeneous resources,and optimizing internal management.Thirdly,introducing SDIC Intelligence improved the market performance of Meiya Pico;the resources obtained by Meiya Pico through the introduction promoted corporate transformation,research and development(R&D),finance,and innovation;moreover,SDIC Intelligence became the shareholder and appointed directors to Meiya Pico,optimizing the latter’s internal management and infuse vigor into the private enterprise through differentiated management.As a result,the governance performance of Meiya Pico was better.Finally,some suggestions are proposed: After introducing state-owned capital,private enterprises should leverage the resource advantages to promote innovation and transformation.While the state-owned capital should implement differentiated management,enhance its support for private enterprises,and participate in the management so that the policy effect of the reverse mixed ownership reform will be realized.The paper is likely to make the following two contributions: Firstly,most of the existing studies started from the mixed ownership reform of state-owned enterprises,but this paper focuses more on the introduction of the state-owned capital to private enterprises,which may expand the studies on reverse reform of mixed ownership.Secondly,a large proportion of previous studies adopted empirical research on the role of private enterprises with many cases highlighting state-owned capital alleviating the difficulties of private enterprises.However,this paper cites the case of Meiya Pico that took the initiative to introduce SDIC Intelligence to improve its performance.By studying the case,the analytical framework of the impact of introducing state-owned capital on the performance of private enterprises is constructed,and how to achieve the sound integrated development of private enterprises and state-owned capital is in-depth analyzed from the perspectives of impact path and effect,aiming to provide experience as references for other private enterprises.