A Case Study Of The Impact Of State-owned Enterprise Mixed Reform On The Internal Control Quality Of Listed Companies

As an important measure in the reform of state-owned enterprises at the current stage,the mixed ownership reform plays an important role in promoting the upgrading of national industries and the sound development of the economy.However,with the deepening of the reform of China’s mixed ownership enterprises,the scope of the reform is expanding,the reform process is accelerating,and the diversification of investment subjects and equity makes the operation of mixed ownership enterprises face multiple risks.How to optimize and improve the increasingly prominent internal control defects of mixed ownership enterprises has become an important issue facing the current.The preliminary investigation found that,for some enterprises,the mixed ownership reform is still at the level of mixed shares,and has not yet achieved deep integration,which led to the simple introduction of capital in some state-owned enterprises in the process of mixed ownership reform,rather than the deep integration of management concepts of newly introduced enterprises and state-owned enterprises,which greatly reduced the effectiveness of mixed ownership reform,This is unfavorable for enterprises to implement high-quality mixed ownership reform.This paper further takes Northeast Pharmaceutical and COFCO Capital as comparative cases to deeply explore the same characteristics and main differences of internal control before and after the mixed reform of enterprises.From the performance of internal control defects before the mixed reform,the two state-owned enterprises have six types of internal control problems at the company level: unclear concept of ownership,low degree of checks and balances of the board of directors,organizational structure that is not conducive to the rational distribution of enterprise authority,no effective supervision of the management,insufficient human resource incentive policies,and the overall lack of development vitality of the enterprise.In addition,risk management and control at the business level are relatively weak The balance of capital supply and demand,operation efficiency and asset supervision and management have problems of varying degrees.After the mixed reform of the two companies,their equity structures have shown a diversified feature.Strategic investors have joined the board of directors and can check each other with the directors of state-owned enterprises.The independence and professional competence of independent directors have improved.The composition of the board of supervisors is more diverse.A market-oriented incentive and restraint mechanism and compensation management system have been built,simplifying the organizational structure,and enhancing the transparency of decision-making and operation process.The biggest difference between the two companies in the change of internal control is the degree of checks and balances between shareholders,the degree of participation of non-state-owned shareholders,and the adequacy of the right to speak.Compared with COFCO Capital,Northeast Pharmaceutical can balance the interests of all shareholders after the mixed reform,which more effectively guarantees the right to speak of non-state-owned shareholders.The enterprise’s ability to resist risks has been enhanced,and the quality of internal control has been improved to a greater extent.This paper therefore puts forward the following proposals to increase the impact of the Soes blended reform: first,the government should focus on examining the rationality of the intention of both sides in the mixed reform of soes,so as to avoid the reform being only for the introduction of resources and capital needs;second,third,the state-owned enterprises should identify the mixed objects after determining the reasonable target of the mixed transformation,furthermore,attention is paid to the diversity of shareholdings.,the parties to the reform should pay more attention to the establishment of the check and balance mechanism of the stock ownership of the enterprises after the reform,so as to guarantee the right of the shareholders to speak,sixth,we should improve the compensation mechanism for senior managers and to avoid an excessive link between pay and performance after the reform.From the perspective of case comparison,this paper adds relevant literature on the economic consequences of "Mixed ownership reform of state-owned enterprises",with a defined benchmark to promote the impact of mixed ownership reform.