Issue: 2023-2024


Since the Third Plenary Session of the Eighteenth Central Committee proposed to actively develop the mixed ownership economy in 2013, and the report of the Nineteenth National Congress further emphasized deepening the reform of state-owned enterprises, the pilot scope of mixed reform of state-owned enterprises in China has been continuously expanded, and has now entered an accelerated stage. According to the Report on the Development of China’s State-owned Economy in 2019, most of the enterprises participating in the mixed reform have achieved the improvement of enterprise performance, indicating that the mixed reform is an inevitable choice for the development of state-owned enterprises under the current market-oriented environment. Ownership structure is the core of corporate governance system. Optimizing the ownership structure of state-owned enterprises reasonably and perfecting the internal governance system in the process of mixed reform are conducive to the sustained and healthy development of state-owned enterprises.

Based on the background of mixed ownership reform, this paper takes the influence of ownership structure change on enterprise performance in the process of mixed ownership reform of Gree Electric Appliances as a case to explore the driving force of performance improvement of Gree Electric Appliances enterprises. First of all, the motivation and implementation path of Gree Electric Co., Ltd. mixed reform are expounded, and the characteristics of its ownership structure are analyzed; Secondly, the short-term capital market reaction before and after changes in equity is analyzed by event research method, and the long-term performance changes under the mixed reform are analyzed from the financial indicators of profitability, solvency and operational ability, and compared with Midea Group and Haier Zhijia, competitors in the same industry; Finally, from the perspective of agency cost, combined with relevant theories and the actual case, this paper combs the influence mechanism of Gree Electric’s ownership structure on enterprise performance, and tests it through time series analysis.

Through the case analysis of the mixed ownership reform of Gree Electric Appliances, the following conclusions are drawn: (1) Under the mixed ownership reform, the ownership concentration and balance of Gree Electric Appliances show a downward and upward trend respectively, and the ownership structure has experienced a transformation process from absolute holding by state-owned assets to relative holding by state-owned assets, and then to diversification of ownership. (2) The change of ownership structure under the reform of mixed ownership has brought positive short term capital market reaction to Gree Electric Appliances, and improved the financial performance indicators of profitability, solvency and operational ability to a certain extent. (3) The influence of ownership concentration on enterprise performance is negative, the influence of equity balance on enterprise performance is positive, and the agency cost has a reverse moderating effect on the above influence, that is, agency cost weakens the negative influence of ownership concentration on enterprise performance and the positive influence of equity balance on enterprise performance.

Keywords: mixed ownership model, organization structure, financial analysis and performance