The Motivation And Performance Impact Analysis For Local State-Owned Assets To Bailout Private Enterprise Crystal-Optech

As a supporting force for promoting China’s market economic growth and accelerating social development,private enterprises have made outstanding contributions to China’s employment,taxation,and technological innovation.Under the current downward situation of the economic market,the problems faced by China’s private enterprises such as operational difficulties and financing pressures have become more and more severe.In October 2018,the Party Central Committee first proposed a bailout policy with a view to successfully assisting private enterprises.As soon as the policy was announced,state-owned assets in various places responded quickly and formulated bailout measures in a short period of time to provide bailout assistance to local high-quality trapped private enterprises.The bailout policy is a support policy with Chinese characteristics,which is not only in line with China’s current goal of building a multi-system integrated market,but also effectively alleviates the short-term liquidity pressure of private enterprises and gets out of the business predicament in terms of overall effect.The case objects selected in this article are The state-owned assets of Taizhou bailout private enterprise Crystal Optoelectronics.On the basis of studying the domestic and foreign literature related to the concept of bailout,we sorted out and summarized the four aspects of the concept,motivation,model and overall effect of bailout.In this context,the basic information of both sides of the bailout and the bailout process are briefly introduced,and the motivation for the bailout of both sides is analyzed.As a bailout party,Taizhou State-owned Assets is for the purpose of protecting the development of the market economy,stabilizing employment in taxes,obtaining investment income,etc.;for the rescued party Crystal Optoelectronics,accepting the bailout can improve financing difficulties,avoid equity transfer risks,and alleviate capital pressure.At the same time,this paper also focuses on the performance impact of bailouts.First of all,the market performance was measured using the event research method,and the analysis results showed that the short-term market performance of the bailout was negative and the long-term market performance was positive.Secondly,the financial analysis method and comparative analysis method were used to study the four major capabilities of Crystal Optoelectronics in detail,and the analysis showed that the company’s solvency has improved;the profitability of the company has not been significantly improved,but its profitability quality has been improved;and the operating ability and growth ability have not been significantly improved.The final analysis also pointed out that bailouts have a positive effect in enhancing corporate value,reducing financial risks,improving corporate fundamentals,and strengthening scientific and technological innovation capabilities.Finally,combined with the above analysis,taking the case as the starting point but not only limited to this case,focusing on the entire bailout process,summarizing the potential risks that may exist on both sides of the bailout,and making suggestions for the bailout parties and the government.This paper further enriches the relevant research on the rescue of private enterprises by local state-owned assets through case analysis,which has certain theoretical significance.As a more successful case in the rescue incident,Crystal Optoelectronics has the characteristics of many small and medium-sized private enterprises,and the detailed analysis content and evidenced research conclusions can provide reference for other private enterprises and local state-owned assets to implement the bailout,which has certain practical significance.