Reform Of State-owned Enterprises Research Articles

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 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.

From Cadres to Managers: The Double-hundred Action Programme and China's State-owned Enterprise Reform

Abstract Reforming China's state-owned enterprises (SOEs) is a complex endeavour. Among recent initiatives, the double-hundred action (DHA) programme stands out for its ambition, especially in its aim to revamp corporate governance structures and management systems. A notable change is that top executive positions are now open to a wider and more diverse candidate pool and are no longer restricted to Party cadres. Based on fieldwork and interviews at a DHA-selected enterprise, this paper explores the DHA's impact on SOE functioning and governance. Our research reveals unanimous support among top executives for the policy, despite stringent performance appraisals and limitations on future promotion opportunities. The policy has significantly transformed recruitment, performance evaluation and remuneration within the enterprise under study. However, although top executive recruitment is no longer tied to Party membership, the Party still exerts its influence through key appointments on the board of directors.

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.

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.

Analysis and Discussion of the Problems in the Process of State-owned Enterprise Reform

Analysis and Discussion of the Problems in the Process of State-owned Enterprise Reform