Reform Of State-owned Enterprises Research Articles

Mixed Reform of State-owned Enterprises and High-quality Development of Enterprises

The reform of mixed ownership in SOEs advances their high-quality development through deepened reforms, optimized state economic layouts, and enhanced capital allocation efficiency. Utilizing A-share listed company data from 2008 to 2022, this study employs a two-way fixed effects model for empirical analysis. The findings reveal a notable positive correlation between SOE mixed-ownership reforms and improvements in corporate governance, incentive mechanisms, and constraints. Moreover, the role of party building plays a crucial moderating function in these reforms. This research elucidates the integration of public ownership with the market economy for listed firms, identifies fresh strategies to boost SOE vitality, efficiency, and competitiveness, and supports the establishment of modern enterprise systems. It also offers theoretical underpinning for the transformation, upgrade, and sustainable growth of state-owned enterprises.

Does the Classified Reform of Chinese State-Owned Enterprises Alleviate Environmental, Social and Governance Decoupling?

Accurate disclosure and proactive engagement in ESG practices are essential for achieving high-quality economic development, particularly as China addresses significant challenges during its reform journey. The Classified Reform of State-Owned Enterprises (CRSOE) is a strategic initiative by the Chinese government aimed at fostering this development. Our study leverages the implementation of the CRSOE as an exogenous shock, employing the difference-in-differences approach to assess the policy’s governance impact on ESG decoupling from the perspective of ownership heterogeneity. The policy was found to alleviate ESG decoupling, particularly pronounced among SOEs with special functions. The governance effect is achieved by reducing the aspiration–performance gap. Specifically, the policy effectively narrows the disparity between a company’s actual performance and the expected performance based on the industry average, thereby mitigating ESG decoupling. However, the policy’s impact can be weakened by factors such as political connections among executives and media attention. Furthermore, the CRSOE effectively addresses greenwashing practices within ESG decoupling, with a particularly strong effect on SOEs that fail to disclose ESG information in alignment with Global Reporting Initiative (GRI) standards. These findings highlight the importance of understanding the broader implications and underlying mechanisms of the policy. Therefore, building on the assessment of how the CRSOE policy impacts ESG decoupling, we also examine the mechanisms through which this policy operates and how its effectiveness varies under different conditions of heterogeneity. By extending the application of principal-agent theory and performance feedback theory, our research suggests that policymakers should prioritize market-driven reforms for fully competitive SOEs and promote a stronger emphasis on non-financial goals. Additionally, it is essential to mitigate the undue influence of political promotions on the management of all SOEs.

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.

Optimization of big data analysis resources supported by XGBoost algorithm: Comprehensive analysis of industry 5.0 and ESG performance

To enable state-owned enterprises in Industry 5.0 to better carry out M&A activities, it is important and necessary to provide early warning of M&A risks, which directly affects the interests of both parties and even affects the effectiveness of state-owned enterprise reform. The author proposes the optimization of big data analysis resources supported by the XGBoost algorithm: a comprehensive analysis of Industry 5.0 and ESG performance. Design a comprehensive evaluation system to measure the M&A risk of state-owned listed companies. Using Python programming language to achieve data crawling and processing. Build an early warning model using the XGBoost algorithm. To further evaluate the effectiveness of the early warning model, comparative experiments were conducted. Using multiple linear regression models to study the significant factors of merger and acquisition risk. The experimental results show that the prediction accuracy based on the XGBoost algorithm is 80 %, which performs the best among all models and has stronger reliability and applicability. ConclusionThe return on investment capital, operating profit margin, and net profit from paid consideration are more important and effective in predicting merger and acquisition risks; The total asset turnover rate, return on investment capital, equity balance, and audit quality are more conducive to suppressing merger and acquisition risks.

Do error-tolerance and correction mechanisms enhance the performance of state-owned enterprises in China?

This study investigates the impact of error-tolerance and correction mechanisms (ETCM) on the performance of state-owned enterprises (SOEs). We conduct difference-in-differences (DID) estimations and find that the implementation of this policy significantly improves SOEs' performance. Mechanism analysis shows that the ETCM can strengthen the innovation capacity and improve internal governance of SOEs. Heterogeneity analysis shows that our results are more pronounced in SOEs with lower levels of corporate management, lower risk preferences of managers, higher intense external market competition, non-Industrial corporate and eastern regions. We also find that the ETCM improves SOEs' total factor productivity (TFP). Overall, this study provides perspectives and evidence from ETCM for deepening the reform of SOEs.

Research on the Problems and Countermeasures of Using Management Accounting Methods to Promote the Reform of State-owned Enterprises

This paper deeply discusses how to use the power of management accounting to promote the deepening of the reform of state-owned enterprises, and proposes effective solutions to the existing problems. The reform of state-owned enterprises, as an indispensable part of China's economic map, is of great importance. Management accounting, as a mature and efficient management tool, is gradually becoming an indispensable supporting force in the reform of state-owned enterprises. This paper provides an in-depth analysis of the unique role of management accounting in the reform of state-owned enterprises. We find that by introducing management accounting concepts and methods, we can effectively optimize resource allocation, improve decision-making efficiency, and inject new vitality into the reform of state-owned enterprises. The research results of this paper are of great significance for guiding the reform practice of state-owned enterprises and improving the operating performance of state-owned enterprises. We believe that with the help of management accounting, the reform of state-owned enterprises will be able to take more solid steps and contribute more to the sustainable development of China's economy.

Financial Analysis of COFCO Capital under the Framework of Harvard

In recent years, COFCO Capital will continue to benefit from the synergistic advantages of the gold-control platform and the release of dividends from state-owned enterprise reform. The company has industrial advantages in the direction of strategic layout of food security, and realizes rapid growth in revenue and profit. Taking COFCO Capital Corporation, a professional finance company and investment platform under COFCO Group, as an example, this study applies Harvard financial analysis method, selects data from the 2018-2022 annual report, and comprehensively analyzes COFCO Capital Corporation's current operating status, competitive advantages, and future development potential in four dimensions: strategy, finance, accounting, and outlook to provide decision-making reference for the company and relevant stakeholders. It is found that the enterprise's solvency and operating ability are good, but its profitability and growth ability are in poor condition. It is proposed that solutions should be explored in terms of internal management and external investment and financing to improve its financial status and operational performance, which provides a reference for the company and relevant stakeholders to make decisions.

Research Review on the Mixed Reform System of State-owned Enterprises in China

The state-owned economy is the pillar economy of China. If the nationalized enterprises and non-nationalized enterprises develop at the same time, they can further improve the shortage of China's economic system and improve the production efficiency. As an excellent policy, the mixed reform system makes full use of the advantages of China's social and market background, scientifically and effectively solves the disadvantages of China's economic system, improves China's market status, strengthens the national supervision over the work of government departments, and promotes the healthy and long-term sustainable development of China's economy. This paper aims to summarize the significance of the mixed reform in China. The mixed reform of state-owned enterprises will help state-owned capital and private capital to become stronger, better and bigger, improve the competitiveness of enterprises and build world-class enterprises. Mixed reform of state-owned enterprises is conducive to the organic combination of public ownership and market economy. The mixed reform of state-owned enterprises is conducive to stimulating the vitality of micro subjects.

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.

Restrictions on Chinese SOE Investments for Data Security Reasons: The Case of Australia

In the digital age, the proliferation of investments made by Chinese state-owned enterprises (SOEs) has raised concerns among host countries about the risks that the investments could provide the Chinese government access to sensitive data involved in the target businesses, posing threats to their national security. Consequently, countries with sophisticated foreign investment screening (FIS) regimes, such as Australia, have imposed entry restrictions on Chinese SOE foreign direct investment (FDI) on the grounds of data security concerns. This article takes Australia as an example to investigate whether this concern has become a ‘panacea’ to justify any restrictions imposed by host states on Chinese SOE FDI in the digital age. Through in-depth examinations of Australia's reformed FIS regime and its application to Chinese SOE investments, this article demonstrates that data security has increasingly become a preferred justification for imposing restrictions on Chinese SOE investments. It argues that the data security justification is legitimate because of Chinese SOEs’ strong political ties, which have been significantly strengthened in China's ongoing SOE reforms, as well as China's prominent policy emphasis on data protection in recent years. However, measures should be taken to mitigate data security becoming a ‘minefield’ impeding the restoration of Australia–China investment relations.

CPTPP State-Owned Enterprise Rules and Our Countermeasures

State-owned enterprises (soes) play an important role in the global economy. Some developed countries believe that because of the state nature of SOES, SOES enjoy more privileges and unfair competitive advantages than private enterprises, including government subsidies and regulatory incentives, so that their market competitiveness and overall strength are strong. In order to get rid of the “Official business” advantage of state-owned enterprises, promote the equal competition between state-owned enterprises and private enterprises, and reduce the concern of state-owned enterprises, the rules of our state-owned enterprises are gradually formed. For the first time in the international market, CPTPP specifically regulates the rules of state-owned enterprises. Compared with other free trade agreements, cPTPP's SOE rules are characterized by stronger competition neutrality rules, wider scope of application, more non-commercial aid rules and higher transparency. In the context of China's imminent accession to CPTPP, this paper analyzes the regulation of our state-owned enterprises that have signed the free trade agreement, and finds that the number of state-owned enterprises to be regulated in the free trade agreement is small and the level of regulation is low. Therefore, we must actively negotiate the new issues of state-owned enterprises and actively participate in the construction of international rules of state-owned enterprises. For the CPTPP high-level SOE rules negotiation, we should follow China's national conditions, study the introduction of ownership-neutral competition-neutral principle as the core, and further deepen the reform of state-owned enterprises, state-owned enterprises to standardize the way of subsidies.

ANALYSIS OF THE NEW LAW ON CORPORATE GOVERNANCE IN STATE-OWNED ENTERPRISES IN SERBIA IN THE LIGHT OF OECD GUIDELINES

In this paper the authors analyse some questions pertaining to the reform of state-owned enterprises in Serbia regarding the compatibility of the new legal regulation of corporate governance in the public sector with the OECD Guidelines. The analysis focuses on the principles and recommendations for more efficient implementation of reforms in state-owned business entities as outlined in the OECD Guidelines, as well as on the provisions of the new Law on the Management of Companies Owned by the Republic of Serbia. The analysis aims to determine whether the new solutions have helped in achieving a uniform legal framework and to what extent these new solutions contribute to the realization of the state’s ownership interests, value creation in the public sector, and the public good.

Job insecurity and fertility: Evidence from massive lay-offs in urban China

We exploit a staggered reform of state-owned enterprises (SOEs) in the late 1990s in China to provide plausibly causal evidence that job insecurity has a first-order impact on fertility. Prior to the reform, unemployment rates were low and job security for SOE workers paralleled that of government employees. Post-reform, numerous SOE employees were laid off and their contracts were no longer permanent, but government employees continued to enjoy high levels of job security. We find that the reform caused SOE employees who retained their positions to delay having their first child by 0.718 years. The spillover effects are sizable: employees in the untargeted private sector delay starting a family by 0.387 years. Despite the importance of family lineage in China at the time, our findings indicate that the fertility response transcended mere birth timing adjustments, and decreased couples’ likelihood of having children. Specifically, the reform initially reduced the number of births by 8.4 % in the short run and had a more pronounced long-term effect on completed fertility at age 45.

A Study on the Performance of Mergers and Acquisitions in the Context of State-Owned Enterprise Reform: The Case of Ansteel and Benxi Steel

The State-owned Assets Supervision and Administration Commission emphasizes that promoting the reorganization of state-owned enterprises (SOEs) can focus their advantageous resources, which plays a positive role in addressing issues such as the uneven distribution of state-owned capital, inefficient resource allocation, and homogenized development. This paper, set against the backdrop of SOE reform and central enterprise reorganization, uses the merger and reorganization event of Ansteel Group and Benxi Steel Group as a case study to investigate how central enterprise reorganization can improve the performance of central enterprises, based on the theory of synergistic effects. The study finds that under the theory of synergistic effects, after the reorganization of Ansteel Group and Benxi Steel Group, the operational, financial, and managerial synergistic effects of Ansteel Group continue to be realized, thereby enhancing the performance level of Ansteel Group. This paper aims to demonstrate the improvement of enterprise performance through central enterprise reorganization and calls on other central enterprises to actively respond to the national requirements for mergers and reorganizations, offering suggestions for subsequent reorganizations of central enterprises.

A Study on the Performance of Mergers and Acquisitions in the Context of State-Owned Enterprise Reform: The Case of Ansteel and Benxi Steel

A Study on the Performance of Mergers and Acquisitions in the Context of State-Owned Enterprise Reform: The Case of Ansteel and Benxi Steel

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.

Privatization of SOEs and its innovation performance: A reexamination

AbstractThe empirical literature comparing the innovation performance of state‐owned enterprises (SOEs) and private firms in China often yields conflicting results. To shed new light on this debate, we construct an extensive dataset by linking the Annual Survey of Industrial Enterprises (ASIE) dataset with patent quality data. Our analysis focuses on the impact of privatization on the innovation performance of former SOEs. Our findings suggest that the privatization of SOEs generally results in a decrease in innovation performance. This adverse effect is particularly pronounced for firms situated in regions characterized by low levels of market development or those grappling with high financial constraints. This supports the hypothesis that SOEs can serve as a mechanism to address institutional deficiencies in China's context. Our study contributes to a deeper understanding of the relative innovation performance of SOEs and private enterprises and has significant policy implications for ongoing SOE reforms in China and other developing countries.

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.