Ownership Reform Research Articles

Research on Mixed Ownership Reform of State-Owned Enterprises from the Perspective of Marxist Political Economy

Under China’s socialist system, state-owned enterprises are key forces driving the economic trajectory and providing strong momentum. These enterprises not only bear the crucial responsibility of advancing the process of national modernization but also serve as the core of the national economic lifeline through their irreplaceable status and function amidst changing times. In the new era, with the advent of the technological revolution and the wave of globalization, state-owned enterprises face unprecedented opportunities and challenges. As a significant aspect of state-owned enterprise reform, the mixed ownership reform is not only a transformation in the structure of enterprise ownership but also a reflection of China’s broader, comprehensive reform efforts. By deeply advancing this reform, it will help optimize the allocation of state-owned assets and significantly boost technological and management innovation within state-owned enterprises, ensuring their competitiveness in the intense market environment. Therefore, this paper will conduct an in-depth analysis of the mixed ownership reform of state-owned enterprises from the perspective of Marxist political economy.

Reverse mixed ownership reform and financial risks in private enterprise

The mixed ownership reform is an important part of the economic restructuring in our country. In addition to the participation of non-state-owned capital in soes, it is also more and more common for state-owned capital to participate in the reverse mixed ownership reform of private enterprises. As an important force in China's economic development, the national economy has entered a new normal in recent years, and due to the impact of COVID-19, the Sino-US trade war and other events, many private enterprises have fallen into financial crisis and entered a "wave of closure." Based on this background, this paper empirically studies the impact of state-owned capital shareholding on the financial risk of private enterprises by using the sample of A-share listed enterprises in Shanghai and Shenzhen Stock exchanges from 2007 to 2021. In addition, this paper also discusses the influencing mechanism from two aspects of resource acquisition and governance supervision, and further analyzes that the effect of reverse mixed ownership reform of private enterprises on reducing financial risk mainly comes from the shareholding of state-owned non-financial institutions. This paper enriches the research on the economic consequences of reverse mixed ownership reform and the influencing factors of financial risks, and provides new ideas for improving the ability of private enterprises to prevent financial risks and promoting the healthy and stable development of private enterprises.

Assessing the Impact of Land Fragmentation on Agricultural Productivity and Rural Development in Vihiga County, Kenya

Increased population pressures affect land as it is divided again and again resulting in poor yields in agriculture. Therefore, the purpose of this study was to establish the Legislative changes and population growth as factors leading to land fragmentation in Vihiga County, Kenya. Following the Agricultural Production Function Model, the study was descriptively cross-sectional. The study was undertaken in Vihiga County. Purposive sampling together with the stratified random sampling technique was adopted to recruit participants to the study. The population was over 10,000 therefore sample determination was done using Fisher’s formula which gave 384 peasant farmers with subdivided farms. Quantitative data were gathered using, Likert-scale questionnaires that were semi-structured, while qualitative data were gathered using interview guides. Quasi-experimental research design incorporated both quantitative and qualitative data that used both descriptive and inferential analysis. The study showed that 58percent of the households had land of half-quarter to half acre, 71 percent. 3 percent of farmers are owning the land for farming. On the issue of land fragmentation 94 % of the respondents agreed that this was prevalent mainly as a result of inheritance. Also, 48% of subdivisions produced subdivided plots that were less than a quarter acre, therefore reducing the productivity of farm land and posing difficultly in managing it. While 84% of responded farmers had less than one acre of land, only 16% had more than one acre of land which was strongly indicating the level of land fragmentation. Additionally, on 66 percent of the agricultural: land size farmed was between a quarter and half an acre. It revealed that farm productivity had positive relation with larger land size (r = 0. 888). Descriptive statistics and inferential tests showed a strong positive relationship between land size, land ownership and productivity found out that large block of size is productive. This also affected the investment in modern and mechanized farming practices with a correlation of -0. 598 as the fragmentation was associated with low yields and low profitability or economic return with r = - 0. 443. Based on the findings of the study, the researcher concludes that land consolidation is crucial in increasing agriculture productivity and supports the policies dealing with efficient use of the limited land resources. This study recommended that in the event of addressing the issue of fragmentation prioritization of land consolidation and the encouragement of land ownership reforms to accommodate investments in different techniques in support of superior usage of land, thereby increasing agricultural, production and sustainability levels.

Research on the Mechanism of Employee Stock Ownership on Corporate Performance under the Background of Mixed Reform

With the deepening of the mixed ownership reform of state-owned enterprises, the employee stock ownership plan that was once suspended has been started again, and the government has clearly proposed employee stock ownership as an important way of mixed ownership reform. Based on the background of the current mixed reform of state-owned enterprises, this paper analyzes the mechanism of employee stock ownership on the performance of state-owned enterprises from four dimensions: corporate governance, corporate operation, financial competitiveness and market effect, further expands the research perspective, and provides references for the implementation of employee stock ownership plans in state-owned enterprises in the future and for relevant departments to analyze the problems in the pilot process of employee stock ownership.

Do Green Finance Policies Inhibit the Financialization of Manufacturing Enterprises? Empirical Evidence Based on a Quasi-Natural Experiment with the “Green Credit Guidelines”

Against the background of the increasing financialization of manufacturing enterprises, whether green financial policies can inhibit the financialization of manufacturing enterprises is a major practical issue worth exploring. It can help government departments to guide the sustainable development of the real economy of enterprises, effectively curbing the trend of over-financialization of enterprises, thus preventing potential systemic risks and safeguarding the sustainable development of the economy. Because the green credit guidelines function as a more mature development of green financial policies, this paper takes Chinese A-share listed companies from 2005 to 2022 as the research sample, adopts the propensity score matching and double difference method, and constructs a quasi-natural experiment with the “Green Credit Guidelines” as the policy shock to analyze the multiple impact effects of green financial policies on the financialization of manufacturing enterprises. The results of the study show that (1) green finance policy has a significant inhibiting effect on the financialization of manufacturing enterprises; (2) due to the different motives of manufacturing enterprises in holding financial assets, green finance policy has a more significant inhibiting effect on the long-term financialization of “substitution”; (3) state-owned enterprises (SOEs) bear more social responsibilities and have credit advantages. Green finance policy has a more obvious inhibiting effect on the financialization of non-state-owned manufacturing enterprises; (4) major shareholders can play a better supervisory role in enterprises with high equity concentrations, so green finance policy has a more significant inhibiting effect on the financialization of manufacturing enterprises with low equity concentrations; (5) financing constraints have a masking effect in green finance policy and enterprise financialization. Based on this, this paper puts forward the following targeted recommendations. For the governmental level: first, to establish a sound manufacturing credit system; second, to focus on enterprise-financing constraints. For the enterprise level: first, to optimize the asset structure to promote transformation; second, to deepen the mixed ownership reform of state-owned enterprises.

Mixed ownership reform of state-owned enterprises and executive compensation stickiness: Evidence from China

Optimization of executive compensation incentives is an important part of the reform of state-owned enterprises, but the existence of executive compensation stickiness weakens the effect of compensation incentives. Based on data of state-owned enterprises listed on the Chinese A-shares market over the 2013–2019 period, this paper evaluates the ownership reform, or mixed ownership, of state-owned enterprises by the shareholder ratio of non-state shareholders and the appointed directors, and examines the relationship between the mixed ownership reform of state-owned enterprises and the executive compensation stickiness. The study concludes with the following findings. The shareholder ratio of non-state shareholders has no significant impact on the executive compensation stickiness, whereas directors appointed by non-state shareholders significantly reduce the executive compensation stickiness. Compared to pure central enterprises, the inhibiting effect of the mixed ownership reform on the executive compensation stickiness is more significant in local state-owned enterprises. The inhibiting effect of the mixed ownership reform on the executive compensation stickiness is more significant when managerial power is restricted or regional marketization degree is low. This paper enriches and extends extant studies on the impact of ownership reform on executive compensation incentives from the perspective of executive compensation stickiness, and provides important empirical evidence for the enhanced relationship between reforms of state-owned enterprises and executive compensation.

A Study on the Impact of Mixed Reform on the Financial Performance of State-Owned Enterprises

The concept of mixed ownership reform was first put forward in the 1990s, and has been developed and strengthened year by year. Its main purpose is to stimulate the internal vitality of enterprises by introducing the combination of non-state-owned capital and state-owned capital, and optimize the management mechanism through the implementation of mixed ownership reform, so as to promote economic development and enhance the competitiveness of enterprises. This reform process not only contributes to innovation and efficiency within the company, but also lays a solid foundation for the long-term development of the company. Yunnan Baiyao Co., Ltd. is a well-known pharmaceutical enterprise, which has a significant influence and market position in the national pharmaceutical industry, and is also a key enterprise in the early adoption of mixed reform in China. Therefore, it is of great reference value and significance to analyze and study the financial performance of Yunnan Baiyao after the mixed reform. At present, the country is vigorously promoting the mixed ownership reform of state-owned enterprises. Based on this background, this paper, by analyzing the financial performance of enterprises and applying relevant theories involved, makes a detailed case analysis of the development status of Yunnan Baiyao after the mixed reform, with a view to providing some suggestions for similar enterprises or other enterprises with the intention of mixed reform.

Dilemmas and Optimisation Countermeasures of Mixed Ownership Reform of Local State-owned Enterprises

In recent years, local governments have been actively promoting the reform of mixed ownership in local state-owned enterprises. This requires seizing opportunities and taking the initiative to change, allowing state-owned enterprises that encounter difficulties in transformation and upgrading and development bottlenecks to regain vitality, achieve self-transcendence, and promote socio-economic development. This paper focuses on the reform of mixed ownership in local state-owned enterprises, analyzes the difficulties faced by the reform of mixed ownership in local state-owned enterprises, and proposes corresponding optimization strategies, with a view to providing reference for similar research.

The influence of non-state-owned shareholder governance on the governance level of state-owned enterprises--Based on the perspective of board resolution behavior and party organization governance.

With an increasing number of heterogeneous shareholders participating in corporate governance in reality, the assumption of shareholder homogeneity in agency theory is gradually relaxing in the modern field of corporate governance. The policy of mixed ownership reform in China provides empirical evidence for studying heterogeneous shareholder governance. To fully understand the governance effects of non-state shareholders, we employ the ownership proportion held by non-state shareholders among the top ten shareholders and the appointment of directors as measures for non-state shareholder governance. Using a panel fixed-effect model from the perspective of state-owned enterprises (SOEs) party organizations, we examine the impact of non-state shareholder governance on the governance level of SOEs. The study reveals that non-state shareholder governance positively affects the governance level of SOEs, with board resolutions playing a crucial role in this relationship. When party members serve as directors, the governance effect of non-state shareholders is more significant. Based on the aforementioned research findings, we recommend further refining corporate governance measures for SOEs within the context of SOE reforms. It is advisable to optimize the party organizational governance structure and leverage the synergistic effects of non-state shareholder governance and party organizational governance. Advancing reforms along the Pareto improvement path will contribute to establishing a distinctive corporate governance system for Chinese SOEs.

Research on the Influence of Strategic Adjustment on Enterprise Performance from The Perspective of Mixed Reform of State-owned Enterprises

In order to effectively solve the problems of low operation efficiency and rigid management system of state-owned enterprises, governments at all levels have actively implemented and practiced mixed ownership reform since 2016, trying to promote industrial optimization and upgrading through mixed reform and stimulate the internal development potential of state-owned enterprises. With the continuous development of the economy and society, the state adopted the three-year Action Plan for SoE Reform (2020-2022) in June 2020, giving guiding opinions and new requirements for further deepening the reform of soes. In this context, to help has not yet been mixed change of state-owned enterprises to better understand the concrete implementation process, Shanxi Fen Wine, for example, starting from the mixed change for, the enterprise mixed change in-depth after expanding brand depth, integrated marketing resources, strengthen scientific research innovation, innovation product strategy, optimize the governance structure of five strategic adjustment direction, and the strategic adjustment of influence on enterprise performance. Finally, it draws enlightenment from the three aspects of path selection of mixed reform, advantage utilization of mixed reform and control of strategic direction, which provides reference for the strategic adjustment of mixed reform of state-owned enterprises in the industry. The research found that Shanxi Fen Wine combined with the advantages of mixed reform and made strategic adjustments around the five aspects of brand, marketing, scientific research, product and governance, which had a positive and positive impact on the financial performance of enterprises.

A study on the impact of the degree of mixed ownership reform of state-owned enterprises on corporate environmental response

PurposeThis study aims to explore the relationship between the degree of state-owned enterprises’ (SOEs) mixed reform and the environmental response of enterprises, against the background of actively promoting the reform of mixed ownership in China.Design/methodology/approachThe study is conducted on a sample of A-share listed manufacturing companies in Shanghai and Shenzhen of China, investigated for the period 2015 to 2020. The baseline regression results are robust to a series of robustness and endogeneity tests. To deal with the issue of endogeneity, the technique of instrumental variable method has been applied.FindingsThe study confirms the U-shaped effect of the depth and restriction of mixed ownership on SOEs’ environmentally responsive behaviour in the manufacturing industry, especially for lower environmental regulation and higher level of risk-taking firms. The findings indicate that the government, shareholders and other stakeholders of enterprises should not simply consider that the mixed reform is directly promoting or reducing the environmental response behaviour of enterprises.Practical implicationsSOEs should improve their shareholding structures to undermine performance enhancement at the expense of the environment and increase environmentally beneficial behaviours. Regulators and governments should improve the institutional mechanism of environmental regulation and make efforts to promote corporate awareness of the environment.Social implicationsAlthough the adoption and implementation of environmentally friendly policies are costly, improved environmental response and other social responsibilities are helpful to corporate long-term growth and reputation and obtain more capital market attention. Therefore, firms would benefit from improving their environmental response to protect nature, as well as to enjoy the economic and social benefits of a better environmental response.Originality/valueTo the best of the authors’ knowledge, there is a lack of studies focussing on the environmental behaviour of SOEs of mixed reform. As the mixed reform in China has come to a climax phase in recent several years, SOEs of mixed reform is an ideal environment for research. The study focusses on manufacturing firms as these firms are more susceptible to contribute to environmental pollution, exploitation of natural resources and labour concerns.

The Impact of Executive External Pay Disparity on Enterprise Innovation: Evidence from Mixed-Ownership Enterprises in China

ABSTRACT Reasonable compensation contract arrangements have long been an essential means of promoting the hard work of executives and enhancing corporate performance. While internal pay disparity and its incentive effects have garnered widespread attention, few studies have examined the impact of executive external pay disparity on enterprise innovation. Using panel data from Chinese mixed-ownership listed companies spanning from 2013 to 2020, this study explores how executive external pay disparity affects enterprise innovation. Our findings demonstrate that enterprise innovation is positively influenced by the disparity in executive external pay. This facilitating role is further strengthened in enterprises with a high level of board governance. Additionally, the benefits of executive external pay disparity for innovation are particularly evident in general commercial mixed-ownership enterprises. Mechanism tests reveal that executive external pay disparity plays a pivotal role in enhancing enterprise innovation by increasing corporate risk-taking, ultimately leading to improved enterprise value. This study not only enriches our understanding of the influencing factors behind enterprise innovation from a new perspective but also holds significant implications for deepening the reform of mixed ownership and promoting enterprise innovation through the optimization of compensation contract arrangements.

HOW DOES STATE-OWNED EQUITY AFFECT GREEN TECHNOLOGY INNOVATION OF PRIVATE ENTERPRISES

Based on the data of 22368 private listed companies in the CSMAR database from 2010 to 2022, this paper empirically tests the impact of mixed ownership reform of private enterprises on green technology innovation and discusses the mechanisms of financing constraints. The research finds that the introduction of state-owned equity by private enterprises can help enterprises improve their green technology innovation level. Further research reveals that financing constraints significantly limit enterprises' green technology innovation, and the introduction of state-owned equity can enhance this innovation by alleviating financing constraints. The effect of mixed reform in less developed areas is more significant. This paper provides important empirical data for the mixed ownership reform of private enterprises and also provides ideas for the improvement of the green technology innovation level of private enterprises in developing countries.

Mixed ownership reform and non-state-owned enterprise innovation: Evidence from China

PurposeThis study examines the impact of China’s mixed-ownership reform on the innovation of non-state-owned acquirers, with a particular focus on the impact on firms with high financing constraints, low-quality accounting information or less tangible assets.Design/methodology/approachWe use a proprietary dataset of firms listed on the Shanghai and Shenzhen Stock Exchanges to investigate the impact of mixed ownership reform on non-state-owned enterprise (non-SOE) innovation. We employ regression analysis to examine the association between mixed ownership reform and firm innovation.FindingsThe study finds that non-state-owned firms can improve innovation by acquiring equity in state-owned enterprises (SOEs) under the reform. Eased financing constraints, lowered financing costs, better access to tax incentives or government subsidies, lowered agency costs, better accounting information quality and more credit loans are underlying the impact. Additionally, cross-ownership connections amongst non-SOE executives and government intervention strengthen the impact, whilst regional marketisation weakens it.Originality/valueThis study adds to the literature on the association between mixed ownership reform and firm innovation by focussing on the conditions under which this impact is stronger. It also sheds light on the policy implications for SOE reforms in emerging economies.

Dynamic impact of mixed-ownership reform on enterprise innovation with different property rights

ABSTRACT We use the multi-period difference-in-differences combined with the propensity score matching method (PSM-DID) to examine the dynamic impact of mixed-ownership reform on state-owned enterprises (SOEs) and Private enterprises innovation. Our findings are as follows. Firstly, mixed-ownership reform consistently enhances the innovation level of SOEs and private enterprises, but this effect tends to decline in SOEs and increase in private enterprises, and it is found by comparison that the mixed-ownership reform benefits private enterprises’ innovation more than SOEs. Secondly, mixed-ownership reform raises SOEs and private enterprises’ innovation when equity incentives are low. However, as equity incentives increase, the reform decreases SOEs’ innovation while increasing private enterprises’ innovation. Thirdly, fiscal pressure weakens the positive impact of mixed-ownership reform on the innovation levels of both SOEs and private enterprises. The findings of this study can offer valuable insights for policymakers on increasing the innovation levels of businesses with different property rights through mixed ownership reform.

The strategic effects of non-state shareholders’ governance: based on the perspective of product market performance of state-owned enterprises

ABSTRACT Making state-owned capital and state-owned enterprises stronger, better, and larger is the key driving force for comprehensively building a modern socialist country. This paper studies the impact of non-state shareholders’ governance on the product market performance of state-owned enterprises under the background of mixed ownership reform. Our results show that under the control of equity balances, non-state shareholders appointing directors to participate in governance can optimise the strategic decision-making of state-owned enterprises, promote product and service R&D innovation, and improve the operational efficiency of state-owned enterprises, thereby having a positive impact on the product market performance of state-owned enterprises. And this kind of governance effect is more obvious in state-owned enterprises in local control and competitive industries. Further research finds that the strategic effect of non-state shareholders’ governance not only has long-term sustained characteristics but also has a positive spillover impact on the capital market value and operating performance of state-owned enterprises.

Balancing Innovation and Efficiency: The Impact of Mixed Ownership Reform on Total Factor Productivity in Monopolized and Competitive Industries

Balancing Innovation and Efficiency: The Impact of Mixed Ownership Reform on Total Factor Productivity in Monopolized and Competitive Industries

Does the South-to-North Water Diversion Project promote the growth of enterprises above designated size in the water-receiving areas?-Evidence from 31 provincial-level administrative regions in China.

The South-to-North Water Diversion Project (SNWDP) is believed to drive the next phase of sustainable productivity growth, meeting growing water demand, so as to address increasing environmental sustainability challenges. The Middle Route of SNWDP is regarded as an extremely large long-distance inter-basin water diversion project, which has benefited Henan, Hebei, Tianjin and Beijing since 2014 with great sustainable changes to the cities, groundwater, ecological environment, industrial structure and social development of the beneficiary areas. Taking the number of industrial enterprises above designated size (IEDS) in the water-receiving areas as the research object, this paper takes the year of policy implementation 2014 as the basic time point, evaluating the change of the number of IEDS in the beneficiary areas of the Middle Route of SNWDP through difference-in-difference model. The results show that: (1) The Middle Route of SNWDP promotes the additional growth of the number of IEDS in the beneficiary areas. (2) When the Middle Route of SNWDP promotes the growth of the number of IEDS in beneficiary areas, there is no regional difference for regions with different development levels. (3) The reasons why the Middle Route of SNWDP contributes to the additional growth of the number of IEDS are composed of promoting mixed ownership reform of enterprises in beneficiary areas, increasing water supply and increasing population. However, the Middle Route of SNWDP has not had a significant impact on the traditional total factor productivity or the components of production factors, technology and capital. From the final outcome, the South-to-North Water Diversion Project has played a facilitating role in the sustainable development of large-scale enterprises in the water-receiving areas.

Fergana food and oil snot expansion and problems in production processes

The article presents the history of the reform of state ownership of cocoon industry enterprises in Fergana in the 1918s, their unification into syndicates, and the liquidation of enterprises based on small-scale production. The technical shortcomings of production activities in the cocoon industry, the food industry, problems and issues related to the implementation of established five-year plans are highlighted. Issues such as the use of workers' wages to compensate for technical errors in cocooning industrial enterprises and the introduction of fines for low income are described

Do state-owned enterprises prefer capital from private enterprises with better ESG performance? Evidence from China's mixed ownership reforms

This study investigates whether ESG performance is a criterion for state-owned enterprises (SOEs) to introduce capital from private enterprises in mixed ownership reforms. Using a sample of A-share private listed companies in China and manually collecting the data of the Chinese private listed companies with ownership participation in SOEs during 2010–2020, we find that private enterprises’ ESG performance is positively associated with the possibility and number of their ownership participation in SOEs, which remains consistent after conducting several robustness tests. Moreover, the relationship between private enterprises’ ESG performance and their ownership participation in SOEs is more pronounced for firms with high media coverage and firms without political connections.