The Influence of "Reverse Mixed Ownership Reform" on the Internal Control of Private Enterprises

Abstract

Under the background of mixed ownership reform, relying on the trend of "national advance and private retreat", this thesis takes the private enterprises in China's A-share listed companies from 2007 to 2020 as the research sample to explore the impact of "reverse mixed reform". In other words, it is the impact about the internal control entry of state-owned capital into private enterprises on internal control. It is found that the "reverse mixed reform" has significantly improved the internal control level of private enterprises, especially for enterprises that implement the equity incentive system and enterprises that do not concurrently serve as the chairman and general manager. Further research shows that corporate governance structure and financing constraints play a significant intermediary effect, which is especially helpful to alleviate the problem of difficult and expensive financing of private enterprises. This study examines the impact of the "reverse mixed ownership reform" of private enterprises from the perspective of internal control, enriches the relevant research on mixed ownership and internal control, and hopes to provide a theoretical and practical basis for the mixed ownership reform form of state-owned capital entering private enterprises.