Reform Of State-owned Enterprises Research Articles

Reform of State-Owned Enterprises by Classification: The Case of China's Railway Transportation Industry

Reform of State-Owned Enterprises by Classification: The Case of China's Railway Transportation Industry

Supervision and Misallocation: Evidence from China's State-Owned Enterprise Reform

Supervision and Misallocation: Evidence from China's State-Owned Enterprise Reform

Labor Market Liberalization and Skill Acquisition: Evidence from State-Owned Enterprises Reform in China

Labor Market Liberalization and Skill Acquisition: Evidence from State-Owned Enterprises Reform in China

Research on Risk Factors of External Market-oriented Operation of Oil and Gas Enterprises

Under the background of the "Double Carbon" goal was clearly put forward and the system reform of state-owned enterprises was carried out in an all-round way, China's major oil and gas enterprises generally carry out the construction of the "oil company" mode with the market-oriented operation mechanism as the core to promote themself. Therefore, to analyze external market-oriented operation risks comprehensively and identify key factors are of great significance to help oil and gas enterprises promote their own sustainable development. Firstly, we identified the risk factors of external market-oriented operation and establish an index system through the literature review and expert interview. Secondly, we applied the grey system theory to improve the DEMATEL-ISM approach to divide the hierarchical structural of risk factors and clarify their logical relationships. Thirdly, the driving force and dependence of each factors were calculated by using the MICMAC approach, so that their attribute characteristics were expressed quantitatively. We identified 18 risk factors, then divided them into 6 layers hierarchical structures, and identified 6 key risk factors among them. The analysis results show that the oil and gas enterprises should take corresponding external market-oriented operational risk prevention and control strategies from three perspectives, which of them are perfecting organizational structure, innovating management system and improving technological operation level.

Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia

This study on the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strategic restructuring of the state sector is not in the service of strengthening the efficiency of its business operation. The study has shown that the economic performance of state-owned enterprises exerts a direct influence on economic growth, the budget, government balance sheets, and debt. While healthy enterprises (the ones conducting their business successfully) are valuable state-owned property, enterprises with a loss or over indebted enterprises are obligations which demand intervention through the injection of additional capital or through other forms of help from the state. The main goal of restructuring state-owned enterprises is to improve responsibility and efficiency. The array of measures for improving efficiency ranges from modifications of the legal framework and corporate governance of socially owned enterprises (including corporatization and separation of activities) to the sale of property to the private sector or complete privatization. Reforms are aimed at improving the transparency and responsibility of state-owned enterprises, not just for the purpose of efficiency but also for the purpose of harmonization with the ethical and deontological requirements.

Construction of Management Potential and Symmetrical Leadership Quality Model in Information Environment

With the deepening of the reform and opening-up policy, especially the deepening of the reform of state-owned enterprises, the issue of entrepreneurs has begun to be highly valued by academia and enterprises. The history of world economic and social development tells us that entrepreneurial leadership is destined to be an important and scarce resource, and the supply capacity of entrepreneurial leadership is far less than the demand for entrepreneurial leadership. The universality, cutting-edge and scientificity of management potential are the premise of management potential, which makes us have a further understanding of management potential. Therefore, under the innovation and promotion of many enterprises, the construction of leadership quality model is defined. Through continuous analysis and progress, the theory centered on "using modern information technology" was finally put forward. This paper discusses the phenomenon of management potential in the information environment and analyzes its causes. On this basis, from the perspective of symmetrical leadership, it discusses the solution to the quality model construction and realizes the transparency of management.

The Impact of Job Insecurity on Health Behaviors: Evidence From the Chinese State-Owned Enterprise Reform

The Impact of Job Insecurity on Health Behaviors: Evidence From the Chinese State-Owned Enterprise Reform

Research on the Choice of Enterprise Management and Control Mode

There are three main types of corporate management and control. They are strategic management and control, financial management and control, operation management and control. The choice of enterprise management and control mode is affected by many factors. Enterprises generally establish an appropriate management and control system based on factors such as functional positioning and business characteristics. With changes in internal and external environments or corporate strategic transformations, dynamic adjustment of corporate management and control models. The management and control model of Chinese enterprises must conform to the trends and characteristics of state-owned enterprise reform and industrial transformation.

State ownership and innovations: Lessons from the mixed-ownership reforms of China's listed companies

Mixed-ownership reforms have been the mainstay of reforming China's state-owned enterprises (SOEs) in recent years. In relation to the broader context of the continuous slowdown in economic growth under the New Normal, the reshaping of the innovative capacity of SOEs has been widely considered to be of systemic importance. Yet, in the relevant literature, the effects of mixed-ownership reforms on innovations have remained unclear. This paper seeks to contribute to the literature by means of studying such effects for China's listed companies in the period 2007–2018, from the theoretical perspective of organizational controls in innovative firms. Our study finds that SOEs tend to be more innovative than non-SOEs, and increases in state shareholding do raise the innovative capacity of mixed-ownership enterprises. Further analyses reveal that, for mixed-ownership enterprises, the lower the level of state shareholding the more reliance of innovations on the capability of organizational controls in corporate governance. These findings offer useful policy lessons for China. Additionally, we discuss the contribution of our study to the broader literature at a conceptual level, with an emphasis on the novelty of highlighting the importance of organizational controls in the reform of SOEs.

Privatisation of Central Public Sector Enterprises in India

This paper investigates the different phases of reform state owned enterprises (SOEs) that India had been experience since the beginning of reform and analyses the policy objectives behind the policy of SOEs reforms introduced. Having evaluated the policy objectives based on various source the paper seeks to find the degree to which the objectives have been achieved and had an impact on the performance of SOEs. The paper finds three different phases of privatisation with different objectives and that the of performance of SOEs during these phases have been different. The analysis of performances of SOEs in different phases leads to questioning of the need for privatisation and speculation as to whether the actual objective behind the overall privatisation process is to generate revenue to cut the government fiscal deficit.

Research on the Impact of "Competitive Neutrality" Rules on Chinese State-owned Enterprises

"Competitive neutrality" rules are becoming the focus of attention of the new generation of international economic and trade rules. "Competitive neutrality" rules hinder state-owned enterprises from opening up international markets. It also will weaken the domestic competitive advantage of state-owned enterprises, and the public service capabilities of state-owned enterprises. Therefore, China needs to implement state-owned enterprise reforms to better respond to this trend.

How Officials' Competitive Pressure Affects Sustainable Development Capacity From a Spatial Perspective: Empirical Evidence From China.

The view of political achievements suggests that officials will prefer to implement measures that benefit their own development in order to seek promotions. In the past, GDP weighed heavily in officials’ appraisals, leading them to develop the economy without regard to sustainability. Now that the central government has incorporated environmental indicators into the officials’ appraisal system, will this lead officials to implement sustainable development strategies to the fullest extent? Are there spillover effects and regional heterogeneity in this role? This paper discusses these questions with the help of entropy method and a spatial Durbin model using data of 30 provincial-level regions in China from 2006 to 2016. The conclusions show that, firstly, the officials’ competitive pressure is beneficial to enhance the sustainable development capacity of the province, but this effect is only effective in western China. Secondly, there is no spillover effect of officials’ competitive pressure on sustainable development capacity; thirdly, foreign direct investment, the proportion of state-owned enterprises and environmental regulations have their own unique effects on sustainable development capacity, and there are spillover effects. Based on these findings, this paper proposes corresponding policy recommendations in terms of officials’ appraisal system, talent training, foreign investment introduction, and state-owned enterprise reform.

Institutional Joint Ownership and Enterprise Total Factor Productivity

The total factor productivity of enterprises is the core index to measure the performance of micro-enterprises, and it is one of the key indicators to measure the high-quality development of economy. Based on the 2007-2019 A-share listed company, this paper explores the impact of institutional joint ownership on the total factor productivity of enterprises from the three dimensions of whether there is institutional joint ownership, the degree of association with the industry and the proportion of institutional joint ownership. The study finds that institutional joint ownership can improve the total factor productivity of enterprises, and the higher the degree of connection and shareholdings, the more conducive to improving the total factor productivity of enterprises. Institutional joint ownership promotes enterprise R&D investment, reduces agency costs, and plays a governance role in the capital market. In state-owned enterprises and enterprises with higher levels of internal governance, institutional joint ownership can enhance the total factor productivity of enterprises more significantly. All results are still true after the robustness tests such as tool variables and placebo tests. From the perspective of institutional joint ownership, this paper discusses the impact of this emerging ownership model on corporate governance and the total factor productivity of enterprises, which is of great significance to the healthy development of capital market and the promotion of high-quality economic development. Compared with general institutional investors, institutional joint ownership can make up for the shortage of single institutional investors’ shareholdings, and the industry synergy, supervision and governance effect brought about by its information advantage and management experience will also affect the business development of enterprises, which can effectively improve the total factor productivity of enterprises in the process of maximizing benefits. Based on this, listed companies should realize that institutional joint ownership can play an active role in improving the total factor productivity of enterprises, and actively introduce and support the participation of mutual institutional investors in corporate governance. The regulatory authorities should attach importance to and guide the active participation of mutual institutional investors in the capital market, give full play to the advantages of joint institutional investors’ shareholdings, ensure the sustainability of institutional joint ownership, create a favorable investment environment, gradually improve the level of joint institutional investors’ shareholdings, strengthen supervision and performance appraisal, further standardize the market, guide institutional joint ownership to play a role in the new round of mixed ownership reform of state-owned enterprises, and stimulate the development vitality of state-owned enterprises. With the help of this emerging ownership model in the capital market, we can construct a long-term mechanism to improve the total factor productivity, build a high-quality, high-efficiency and high-level capital market, and help China’s economic transformation and upgrading.

Study on the Financial Performance of Yunnan Baiyao in the Context of Mixed Ownership Reform

Since the 18th Party Congress, the reform of state-owned enterprises has entered a pilot phase and accelerated. To improve corporate performance, a large number of outstanding enterprises have carried out mixed ownership reform. As a major restructured enterprise in Yunnan Province, Yunnan Baiyao's performance capability has been declining year by year under the influence of medical industry consolidation, but its brand value is high, so Yunnan's state-owned assets department has carried out mixed ownership reform of Yunnan Baiyao in order to be able to improve the financial performance of the enterprise. Using Yunnan Baiyao as a case study, this paper describes the process and motivation of the mixed ownership reform of Yunnan Baiyao, and analyzes the financial performance of Yunnan Baiyao before and after the mixed ownership reform in four dimensions, including profitability, solvency, development, and operational capacity, and the results show that the financial performance of the enterprise has been enhanced after the mixed ownership.

Digital Divide of the Shattered "Iron Rice Bowl": Economic Insecurity and ICT Access in China.

Although economic factors account for the digital divide, the effect of economic insecurity on information communication technology (ICT) access has not been determined. The market-oriented reform of Chinese state-owned enterprises in the 1990s resulted in massive layoffs, encouraging us to investigate the relationship between economic insecurity and the digital divide. We draw on data from the China Health and Retirement Longitudinal Study (CHARLS). To handle the endogeneity related to economic insecurity, we use experience in a management position and the number of siblings as instruments for economic insecurity. With the introduction of these two instrumental variables, we find a negative relationship between economic insecurity and ICT access. This study provides insight into ICT policies involving underprivileged people in developing countries.

Analysis on the Innovation of Management Model under the New Situation of State-owned Enterprise Reform

Analysis on the Innovation of Management Model under the New Situation of State-owned Enterprise Reform

State Ownership and Accounting Quality: Evidence from State-Owned Enterprises in China

The inherent problems of state-owned enterprises (SOEs), such as the lack of external monitoring, may harm their accounting quality. However, the results from prior research are not consistent. Therefore, this study investigates the effect of state ownership of SOEs on accounting quality, measured by earnings management. Using the samples of listed SOEs in the A-share market in China from 2009 to 2017, the results indicate that there is a significant and positive relationship between state ownership and earnings management. Furthermore, the results show that higher competition within the industry can effectively inhibit the negative effect of state ownership on accounting quality. Interestingly, the positive relationship between state ownership and earnings management has weakened in recent years, suggesting that the recent mixed-ownership reform of SOEs is effectively working. Collectively, current study extends prior research by focusing on SOEs in a planned economy and by combining the mixed-ownership reform with earnings management. Consequently, this study provides practical implication to regulatory bodies by showing that state ownership plays an important role in the accounting quality of SOEs.

A Theory of Partial Property Rights and the Illusion of State-Owned Enterprises

Abstract China’s State-Owned Enterprises (SOEs) enjoy many special benefits. They do not turn over profits and rents to the state, they pay much less interests than other enterprises in their use of capital, they enjoy monopolistic power in the marketplace, incomes of SOE employees, including managers, are free of policy restrictions. Because these substantial interests are not transferrable to individuals, competition exists for them. Compared with executives of private enterprise, senior managers of SOEs are 94 times more likely of being convicted of a crime. High benefits enjoyed by senior managers of SOEs come with a great risk. Once the illusion of SOEs is punctured, SOE leaders with higher education and long-term visions may become the driving force of SOE reform.

Urban wage inequality: the reform of state-owned enterprises in China’s great transition

Along with the further reforms of state-owned enterprises (SOEs), urban China has experienced an evident increase in wage inequality. Using provincial-level data for the period 1993–2013 and individual-level data from five waves of the China Household Income Project from 1988 to 2013, this paper investigates how the SOE reform affects wage distribution in urban China by considering three mechanisms: wage determination, ownership structure and institutional segmentation. The results of this study show that overall inequality increased with the reduction of SOEs’ share in the economy. Moreover, through a detailed Oaxaca–Blinder re-centred influence function decomposition, this experiment obtains consistent and robust results. Based on the theory of soft budget constraint, this study demonstrates that the increase in urban wage inequality has been mainly caused by wage structure effects. Since the SOE reform in the 1980s, the wage determination mechanism has changed with the increase in the return of the labour force to education. During this period, institutional segmentation was of less significance in explaining the wage gap between SOEs and non-SOEs. Furthermore, the accelerating ageing process of China’s population had no significant effects on the trajectory of urban wage inequality throughout this period.

State-owned enterprise reform in China: The new structural economics perspective

Based on the perspective of new structural economics, this paper reviews each stage of China's state-owned enterprise reform, summarizes their main features, and argues that the root of state-owned enterprise's low efficiency and soft budget constraints is their strategic and social policy burdens. According to the state-owned enterprise's existing situation, the paper provides suggestions for deepening its reform.