Transformation Of Chinese State-owned Enterprise Capital Structure Optimization

State-owned enterprises are the principal component of China economy, as well as the "elite" and "representative" of the strength for the development of China economy, and their capital is the base for their existence and ongoing development. Therefore, whether the structure of their capital is rational not only impacts the quality of their capital and their competitiveness but also directly impacts the furtherance of their reforms. With the approaching of China's entry into WTO and the emerging of domestic buyers' market, state-owned enterprises are faced with even higher difficulty and risk in their development. At the same time, considering the issues relating to the irrationality of the structure of their capital and the high debt and low efficiency that have not been solved fundamentally, how to optimize the capital structure of state-owned enterprises and enhance their vitality has become the principal issue that urgently requires investigation and solution in the practice of the institutional reforms of China economy as well as the economic highlight that arouses wide concerns from all walks of life at present.Starting from analysis of the western classic theories of the capital structure and combining the practice of the optimization of the capital structure of the state-owned enterprises of our country, the dissertation systematically elucidates and puts forward the financial principles for the optimization of the capital structure of the state-owned enterprises, provides perspective analysis on the current situation and issues relating to the capital structure of the state-owned enterprises, sufficiently reveals the causes for the irrationality of the capital structure of the state-owned enterprises, the fall of the operational quality of the state-owned enterprises, their reduced risks as well as the hindrance and misunderstanding in the practice of the optimization of the capital structure, thus the practical policies for the optimization of the capital structure of the state-owned enterprises in the transitional period are explored, which is also the goal of this dissertation.1. China is a large developing country, and now, its economic system is in a transitional period, thus in investigating the optimization of the capital structure of the state-owned enterprises of our country, we shall not only learn from and utilize the latest results form the study on the western theories of capital structure but also combine more of the specific state circumstances and institutional features of our country. Accurately defining the connotations of the concepts of capital structure, state-owned enterprises and state-owned capital, the dissertation has framed the measurement criteria for the optimal capital structure; The analysis on the relationship between the capital structure, capital cost and financial leverage effects has provided a tool for describing the current situation and features of the capital structure of the state-owned enterprises; Detailed commentary on the western classic theories of capital structure may lay a good foundation for the investigation on the institutional causes of the capital structure of the state-owned enterprises of our country; And the international comparison among the structural levels of the capital of enterprises maybecome a basis for proposal of the rational demarcation of the structural levels of the capital of the state-owned enterprises of our country.2. Analysis on the capital structure of enterprises shows the liquidity and cost level of capital sources from different channels of the enterprises as well as their restraints on the operational business and financial activities of the enterprises. Through analysis on the assets structure, we may judge and determine the influence of assets structure on the operations and financial activities of the enterprises and put forward the corresponding policies for rational occupation of capital so that the assets structure of the enterprises may be optimized. Correct conclusions, however, are hard to draw...