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

Since the reform and opening up,China’s private enterprises have developed rapidly and have become the key force in the construction of China’s socialist market economy.They have played an important role in meeting the people’s living needs,expanding employment space,creating tax revenue,and playing a positive role in the stable development of society.However,with the further establishment of the market economy and the increasingly fierce market competition,private enterprises have also encountered some difficulties in their operation and development,such as capital shortage,financing difficulties,resource shortage and transformation difficulties.In order to improve these difficulties,private enterprises choose to introduce strategic investors,and introduce state-owned capital as strategic investors.With the help of state-owned enterprises,private enterprises can obtain financial support,improve financing capacity,obtain high-quality resources and optimize the business model,so that the company’s performance can continue to improve.Therefore,introducing the model of state-owned strategic investors to carry out mixed reform has become the primary choice for many private enterprises to carry out reform,which also opens a new channel for the future development of private enterprises.This thesis takes the introduction of China Urban and Rural Areas into Origin Water for mixed reform as a case to study the motivation and effect of private enterprises introducing state-owned strategic investors,so as to enrich the case studies of private enterprises’ mixed reform.As the enterprise with the highest market value in the environmental protection industry,Origin Water has been in the leading position in the industry since its listing.However,in the process of development,due to the constraints of macro environment and its own conditions,the enterprise is faced with operating difficulties.By introducing state-owned strategic investors,Origin Water can effectively alleviate the previous situation and its mixed reform has a certain demonstration role.It can provide some reference for other private enterprises to carry out mixed reform.This thesis mainly uses literature research method,case study method and comparative analysis method to study the case of introducing state-owned strategic investors into Origin Water.Specifically,first of all,it elaborates the research background and significance of this thesis,combing domestic and foreign research related to the reform of mixed ownership,the selection of strategic investors,and the introduction of state-owned strategic investors by private enterprises.Secondly,it introduces the concept definition and types of mixed ownership reform,as well as the concept and characteristics of strategic investors,and summarizes the motivations for private enterprises to introduce state-owned strategic investors and the four theoretical bases involved in this thesis.Thirdly,it briefly introduces both parties and their business scope in the mixed reform,expounds the production and operation characteristics of Origin Water,and sorts out the process of introducing the state-owned strategic investors into Origin Water.Then,this thesis studies the motivations of Origin Water to introduce state-owned strategic investors,mainly from two aspects of external motivations and internal motivations analysis,the external motivations include: the support of national policies,the impact of macro environment and the special investment attributes of environmental protection industry;the internal motivations include: meeting corporate financing needs,improving corporate governance structures and achieving strategic synergies.Finally,this thesis analyzes the effect of Origin Water’s introduction of state-owned strategic investors.First,it analyzes the market reaction through the analysis of the changes in stock prices and daily returns,and then makes an in-depth analysis of the financial performance of Origin Water’s reform from four aspects: profitability,operational ability,solvency,and growth ability.Next,this thesis analyzes the corporate governance effect and the changes in investment and financing capabilities.Through the above five parts of elaboration and analysis,this thesis draws the following conclusions: the introduction of state-owned strategic investors can improve the investment efficiency and financing ability of private enterprises;The introduction of state-owned strategic investors has brought positive market reactions to enterprises;The introduction of state-owned strategic investors can improve the governance efficiency of enterprises;The introduction of state-owned strategic investors is conducive to improving the financial performance of enterprises.On the basis of the analysis,the corresponding inspiration is drawn: the key to the success of the mixed reform is to choose the state-owned investors that match the strategy;The choice of strategic investors should be based on the needs of both sides;After the mixed reform,we should attach importance to the resource integration of private enterprises and state-owned strategic investors;The introduction of state-owned strategic investors into private enterprises is conducive to the deepening and improvement of mixed reform.