Economic Transition, Corporate Restructuring And Corporate Governance

China is in the transition from Planned Econnomy to Market Economy. Enterprise restrcturing especially state-owned enterprise restructuring is now arising more and more people's attention. What kinds of characteristic does enterprise restructuring have in Transition Economy? What are the main problems? What kinds of modes have been formed in China? And what kinds of enlightenments should we take from restructuring modes in developed countries? The dissertation is trying to answer these questions.J.Fred.Weston concluded restructuring into four modes: Expansion, Contraction, Corporate-control and Change in Ownership Structure. In fact, the third and the fourth mode both change the structure of the ownership in the premise of no variations of the enterprise. Thus we can summurize them into one mode: Corporate Governance. The dissertation will study restructuring modes in Transition Economy in term of Expansion, Contraction and Corporate Governance respectively. Noticeably corporate governance structure is now an worldwide issue. Serious Insider Control is just the right characteristic of corporate governance structure in Transition Economy. Perfecting corporate governance structure should become an important task for restructuring modes in Transition Eocomy natrually.The dissertation consists of five chapters.Chapter 1: Transition Economy and Restructuring .?Enterprise substancially is the connection of a series of contracts. The adjustments of the contracts is the so-called restructuring. Restructuring express an concept of resourse allocation optimizing microeconomically. Its connotation is much more broad and formal than capital restructuring and asset restructuring.estructuring impetus in China comes from macroeconomy and microeconomy at the same time. Government-dominating and Market-dominating are the main types. Too much administration intervention, high transaction costs, lagged techniques and lacking legislations are the main characteristics of restructuring in China.?It is reasonable for government interfering restructuring, for it perform dual frictions simultaneously :the owner of state-owned assets and the administrator of society economy. But too much administration intervention arouses many serious problems. It is significant to discipline government behaviour in restructuring. Chapter 2: Expansion Modes.?Merger&Acquisition is the main mode of Expansion Restructuring. Many theories have been advanced by western reseachers. Scholars in China also carried out effective research under the ground of Transition Economy.here are following M&A modes in China: Undertaking Liability, Purchasing Assets, Absorbing Stock, Holding, Increment Holding, Merger in Stock Market, Volunteer Equity Transfer, Assets Replacement and Equity Replacement ect.?Enterprise Trusteeship is a transition mode to M&A, it is virtually a kind of trust-agency relationship. High agency cost is the main problem in Enterprise Trusteeship inChina. Seeking the countermersures to reduce agency costs is the main task for disciplining enterprise trusteeship.urchasing Shell is an important mode for enterprise expansion through stock market. Purchasing Shell enhances economic efficiency in developed stock markets, but its influence on economic efficiency in China lies on the intention of the merger. It is a Parato inefficiency activity if the merger regards it just as a mode of financing from stock market. Chapter 3: Contraction Modes.?Sell-offs can be sorted into three modes: Divestiture, Spin-offs and Equity Carve-out. Eliminating management inefficiency, operating insynergy and financial insynergy is the motivation of Sell-offs.?Spin-offs includes several other modes such as Split-offs, Split-ups besides Pure Spin-offs. Equity Carve-out is regarded as a mode of contraction although it in fact expands the scale of enterprise.ntegral Restructuring and Sectional Restructuring are the main modes of state-owned enterprise sell-offs in China.Chapter 4: Corporate Governance Modes.?Corpo...