Transformations  in
Business & Economics

MEASUREMENT AND EVALUATION OF CORPORATE GOVERNANCE ABILITY OF MIXED-OWNERSHIP REFORM ENTERPRISES: EVIDENCE FROM CHINA⁹
Yunchao Du, Renxiang Wang, Mingwei Li

ABSTRACT. With the deepening of mixed ownership economy, good corporate governance ability has become an important guarantee for the growth and development of an enterprise, and therefore the governance ability of the mixed-ownership reform enterprises needs to be accurately identified. To evaluate the governance capacity of the mixed-ownership reform enterprises, a measurement system including 16 second-level indicators and 53 third-level indicators was constructed from four aspects of resource integration ability, organizational remodelling ability, relationship coordination ability, and internal and external supervision ability. Using the data of listed companies in Zhejiang, China in 2020 and the analytic hierarchy process (AHP) method, the corporate governance capability of the mixed-ownership reform enterprise was measured from three dimensions of the listed sector, regional distribution, and industry category. Results show that the corporate governance ability of mixed-ownership reform enterprises on the small and medium-sized board is superior to that of the mainboard. Comparing the difference in levels within cities, it can be concluded that internal differences from big to small, respectively are Hangzhou > Quzhou> Ningbo > Shaoxing > Taizhou > Jinhua > Jiaxing > Wenzhou = Huzhou. Most industries in Zhejiang of China have good corporate governance systems, and only a few industries have deficiencies. From the perspective of variance, except for the computer, medicine biological, real estate, and construction industries, other industries have a small gap and relatively balanced development. Overall, there are problems such as insufficient resource recognition ability and resource allocation ability, obvious regional differences, and inadequate control of organisational remodeling ability. Conclusions obtained from this study have theoretical implications for improving the corporate governance ability of mixed-ownership reform enterprises .

KEYWORDS:  mixed-ownership reform enterprises, corporate governance ability, measurement system.

JEL classification:  G34, G32, P21, C12.

⁹Acknowledgments:  This study was supported by the National Social Science Foundation (No. 18BZZ099), the Joint Funds of the Zhejiang Provincial Natural Science Foundation of China (No. LQ21G020001), the Soft science Project of Zhejiang Province (No. 2021C35146), the ZhiJiang Youth Project of Social Science Planning in Zhejiang Province(19ZJQN24YB),the Funds of Ningbo Natural Science Foundation of China (No. 202003N4173), the Funds of Education Department of Zhejiang Province of China (No. Y202043451), and the National Social Science Foundation of China (No. 21CGL024).