Abstract
Based on the database data of Chinese industrial enterprises from 2000 to 2007 and the LP method, this paper measures the total factor productivity of enterprises and investigates the effect of different mixed ownership forms on enterprises’ efficiency and the effect of heterogeneous ownership balance on the mixed ownership enterprises’ efficiency. The state-owned enterprise and mixed ownership enterprise are identified by the enterprise’s paid-up capital. The results show that, on the whole, for the mixed ownership enterprise, the higher the diversification degree of the shareholders is, the higher the efficiency becomes, and in different types of industries, the mixed forms of shareholders have different effects on the efficiency of enterprises. The heterogeneous ownership balance and the enterprise efficiency show nonlinear U-type relationships. Both the higher and lower heterogeneous ownership balance degrees will promote the enterprise’s efficiency. However, when the ownership balance degree is in the range of [0.2 0.5], the increase in ownership balance will lead to the decline of enterprise efficiency. Therefore, when introducing non-state-owned capital, state-owned enterprises should take full account of their own characteristics by rationally controlling the shareholding ratio of non-state-owned capital and play the positive role of a mixed ownership structure in corporate governance with appropriate ownership balances.
Highlights
The decision of the Central Committee of the Communist Party of China on several major issues concerning comprehensively deepening reform in the third Plenary Session of the 18th CPC Central Committee clearly noted that the development of a mixed ownership economy— an important form of realization of China’s basic economic system—showed the direction and target for the reform of state-owned enterprises
On the basis of the data of Chinese industrial enterprises, this paper studies the difference in efficiency between mixed ownership enterprises and state-owned enterprises as well as the reasons behind it and analyzes the effect of heterogeneous large shareholders in mixed ownership enterprises on the mixed ownership enterprise’s efficiency and discusses whether there is an optimal proportion between the two types of shareholders
According to the needs of the research, this paper conducts the measurement test mainly from the following two levels: 1From the perspective of the ownership structure, we study the differences in the efficiency between mixed ownership enterprises and state-owned enterprises and observe the differences in the performance of different industries. 2Taking mixed ownership enterprises as the object, this paper studies the nonlinear effects of the balance between state-owned shareholders and non-state shareholders on enterprise efficiency to investigate whether there is any suitable ownership balance
Summary
The decision of the Central Committee of the Communist Party of China on several major issues concerning comprehensively deepening reform in the third Plenary Session of the 18th CPC Central Committee clearly noted that the development of a mixed ownership economy— an important form of realization of China’s basic economic system—showed the direction and target for the reform of state-owned enterprises. A sizeable literature has analyzed the advantages of mixed ownership enterprises theoretically, but there is not much empirical evidence concerning mixed ownership enterprises. On the basis of the data of Chinese industrial enterprises, this paper studies the difference in efficiency between mixed ownership enterprises and state-owned enterprises as well as the reasons behind it and analyzes the effect of heterogeneous large shareholders in mixed ownership enterprises on the mixed ownership enterprise’s efficiency and discusses whether there is an optimal proportion between the two types of shareholders. The empirical results show that the higher the diversification degree of the shareholders is, the higher the efficiency becomes, and the mixed forms of shareholders have different effects on the efficiency of enterprises in different types of industries. The fifth part is the empirical test of the effect of the heterogeneous ownership balance on the mixed ownership enterprise’s efficiency. The sixth part summarizes the full text and introduces policy recommendations
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