Social Welfare Analysis Of Cross-shareholdings Of Firms Under Mixed Oligopoly Structure

In recent years,the structural transformation and upgrading of China’s market economy has accelerated,and the innovative development and reform of enterprises have become a new direction of improving the quality of economy.As an important economic entity of the country,state-owned enterprises have an important impact on economy and market competition.Therefore,the transformation and upgrading of state-owned enterprises through reform has become a crucial task.In October 2017,report to the 19 th National Congress of the CPC proposed to deepen the reform of state-owned enterprises,promote cross-shareholding and integration of national capital,collective capital and non-state capital.The government issued a series of relevant policies to encourage state-owned enterprises to carry out shareholding reform,support cross shareholding and explore the market-oriented road.As a way of integrating national capital and non-state capital,cross shareholding has become an important measure of mixed ownership reform.In 2015,the central government issued the guiding document "guiding opinions on the functional definition and classification of state-owned enterprises",which divided China’s state-owned enterprises into public welfare state-owned enterprises and commercial state-owned enterprises according to their functions,and put forward targeted measures for them.According to the definition,this paper divides state-owned enterprises into public state-owned enterprises and commercial state-owned enterprises.By constructing the mathematical model of cross shareholding between state-owned enterprises and private enterprises,this paper compares and analyzes the equilibrium state and social welfare of enterprises with and without cross shareholding,And use numerical simulation to analyze.The results show that the cross shareholding of public state-owned enterprises and private enterprises has positive and negative effects on social welfare,which depends on the proportion of cross shareholding.The cross shareholding between commercial state-owned enterprises and private enterprises can greatly improve the production profit and endogenous capacity of enterprises,but it will also have an adverse impact on social welfare.Our government should implement different cross shareholding schemes for different types of state-owned enterprises in combination with the functional characteristics and main businesses of state-owned enterprises.For public state-owned enterprises,we need to take the principle of state-owned control and appropriate shareholding,use cross shareholding to improve enterprise financial performance,improve operating profits,and continuously optimize the layout and structure of state-owned capital.For commercial state-owned enterprises,it is necessary to carry out reasonable standardization and supervision,prevent collusion,and ensure that the efficiency of market resource allocation is not affected while the state-owned enterprises develop rapidly,so as to promote commercial state-owned enterprises to become bigger and stronger and become market subjects that can operate independently under the market economy system.