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

As China’s mixed ownership system continues to deepen its reform,more and more private enterprises are choosing to introduce state-owned strategic investors,and the two-way mixed reform model is in full swing.Most of the studies by Chinese scholars on mixed ownership system have focused on the mode of introducing private capital into state-owned enterprises,so there are many research results on it.However,scholars have conducted less research on the motivations and effects of the introduction of state-owned strategic investors into private enterprises,especially the mechanism of the effect on performance after introduction.Therefore,it is worth considering and verifying the motivation for private enterprises to introduce stateowned strategic investors,the mechanism of their effect on performance after introduction,and whether the effect achieves the expected goals.This paper firstly adopts the literature research method to review the literature in related fields;secondly,it selects Hotitech Technology Company Limited as the research object and analyzes the motivation of its introduction of Fujian Electronics based on the synergy effect theory,equity structure theory,signaling theory and strategic alliance theory;then analyzes the mechanism of the effect of Hotitech’s introduction of Fujian Electronics based on the "system-behavior-performance" analysis paradigm.The study then analyses the mechanism of Hotitech’s introduction of Fujian Electronics according to the "institutional-behavioral-performance" paradigm,and analyses the effect of Hotitech’s introduction of Fujian Electronics from three dimensions: capital market response,financial performance and nonfinancial performance.The study finds that: the improvement of Hotitech’s governance structure has facilitated investment and financing behavior;its debt servicing capacity has been enhanced and the tax burden has been reduced.However,the introduction also generated negative capital market reactions;profitability,operating capacity and development capacity were not significantly improved;and innovation capacity was insufficient.In order to achieve better results,private enterprises need to carefully select state-owned strategic investors,consummate their governance structure,focus on resource integration,insist on improving their innovation capacity and improve the supporting policies related to national common progress.It is hoped that the findings and recommendations of this paper can provide useful reference for other private enterprises to introduce state-owned strategic investors.