Research On The Motivation And Effect Of Introducing State-owned Capital Into Family Enterprises

The reform of mixed ownership is an important approach to the reform of China’s economic system,with the goal of achieving a mixed ownership economy in which state-owned capital,collective capital,non-public capital,and other cross shareholding and mutual integration.As an important approach to the reform of mixed ownership,the participation of state-owned capital in private enterprises is receiving increasing attention.In the wave of private enterprises introducing state-owned capital in 2018,most enterprises have been nationalized for the purpose of seeking state-owned capital bailouts.And these enterprises are mainly policy oriented environmental protection enterprises.Scholars have mainly studied these enterprises from a resource perspective and believe that the motivation for nationalization of private enterprises can be mainly divided into two aspects: acquiring resources and seeking property rights protection.This article selects LIBA as the research object which introduced state-owned capital in a well run and financially abundant situation,to explore whether it has other motivations besides resource perspective.This article uses empirical research,quantitative research,and qualitative research methods to explore the motivations and effects of introducing state-owned capital into LIBA,a family business.The study found that the motivation for nationalization of LIBA can be divided into macro and micro aspects.On the macro level,LIBA are affected by the following factors:mixed reform policies promoting state-owned equity participation,international trade frictions affecting industry development,and industry characteristics affecting corporate profits.At the micro level,This article finds that in addition to the motivation of scholars who have already proposed a resource perspective,LIBA’s proactive "de familialization" behavior in corporate governance and the timing of intergenerational inheritance show that LIBA also has the motivation to improve the company’s operational efficiency,that is,to improve corporate governance and promote intergenerational inheritance.The effect of introducing state-owned capital into LIBA can be divided into three aspects: market reaction,financial effect,and non-financial effect.In terms of market reaction,the nationalization of the company has reduced the short-term wealth of shareholders,and investors are less optimistic about the company’s nationalization behavior.In terms of financial effects,the introduction of stateowned shareholders can help improve the company’s supply chain position and improve its profitability.However,the company’s main business growth ability is relatively weak.What is worth looking forward to is the investment opportunities in the semiconductor field brought by state-owned shareholders,which is expected to enhance the company’s future earnings.The addition of state-owned shareholders has improved the company’s financing ability and supply chain position,which also made the company’s debt level and asset liquidity more reasonable.This is conducive to the enhancement of the company’s debt paying ability and operating ability.In terms of the non-financial effect,the introduction of state-owned capital by LIBA is conducive to the diversification of the company in the semiconductor field,while also helping to change the company’s equity structure,reduce agency costs,and improve corporate governance efficiency.This article proposes that family businesses can achieve the goals of acquiring resources,seeking property rights protection,improving corporate governance,and promoting intergenerational inheritance by introducing state-owned capital.The theoretical significance of this study lies in expanding the motivation for family enterprises to introduce state-owned capital from an efficiency perspective.It is believed that the motivation for family enterprises’ nationalization includes not only obtaining resources and seeking property rights protection,but also improving corporate governance and promoting intergenerational inheritance.In terms of practical significance,this article can help provide reference for family businesses.At the moment when the country is vigorously promoting mixed reform,family businesses can improve their business efficiency and promote family intergenerational inheritance by introducing state-owned capital.