Reverse mixed ownership reform and financial risks in private enterprise

Weiyao Lu

doi:10.62051/se70xa82

Authors

Weiyao Lu

DOI:

https://doi.org/10.62051/se70xa82

Keywords:

Private enterprise; Reverse mixed reform; Financial risk.

Abstract

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.

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