Financial Crisis, State-Owned Background And Corporations' Behavior

The relation between state-owned background and corporations' behavior is a hot topic around the world, but most literatures are based on normal context, while when the economy becomes worse, like financial crisis, the mechanism of state-owned background on corporations' behavior may be much more different. Based on the product shock and financing shock during 2008 financial crisis, we compare corporations' behavior before and after financial crisis, analyze the effect of state-owned background on corporations' behavior through policy responsibility, soft budget of bank credit and commercial credit, trying to deepen the knowledge of the mechanism of state-owned property during financial crisis. The main contents and conclusions are the following three aspects:(1) During financial crisis, the difference of policy responsibility between different property enterprises and the resulting differences in corporate earnings. We found that at the beginning of financial crisis(2008), the rate of layoffs is less for state-owned companies for the corporations which have dismissed employers, the increase rate of average wage is less for state-owned companies, so the average wage adjustment strategy decrease the labor cost caused by insufficient adjustment of employees and profit decline for state-owned corporations. While in 2009, as the same in the normal environment, there is no difference in the employer adjustment and average wage adjustment strategy for state-owned corporations and non-state-owned corporations, so there is no difference in profit decline caused by labor cost adjustment between state-owned corporations and non-state-owned corporations.(2) During financial crisis, the influence of state property on soft budget of bank credit. We found there is soft budget of bank credit during normal environment and financial crisis. But the situation is different at different environment. In normal environment, state-owned corporations whose profit is negative have soft budget of short-term and long-term bank credit, and in 2008, the budget of short-term and long-term bank credit is more soft, while in 2009, the soft budget of bank credit is mainly reflect on short-term credit. In addition, on the trends of bank credit budget, comparing with normal environment, the budget of bank credit for state-owned corporations is mush soft in 2008, and become hard in 2009(3) During financial crisis, the change of the difference of commercial behavior between state-owned corporations and non-state-owned corporations. We found, firstly, listed corporations decrease net credit supply mainly by decreasing credit supply in 2008, and compared with 2008, the commercial supply and commercial demand increase both, and net commercial credit supply increase. Secondly, from normal environment to 2008, and to 2009, the difference of commercial supply, commercial demand and net commercial supply decrease firstly, and then increase.This thesis improves the current study about the mechanism of state-owned property in three ways.At research view, this paper studies the mechanism of state-owned property during financial crisis, while most research are based on normal environment, the research on financial crisis is good for deepening the knowledge of the mechanism of state-owned property.At research context, we analyze product shock, financing shock and the mechanism of state property in one framework. We will analyze the behavior of different state background corporations at different stage of financial crisis, so we can compare the adjustment strategy for different firms.At research technology, on norm respect, based on policy intervention theory, corporate governance theory, and coropate financing theory, this paper deduce the relation and mechanism of state-owned property on corporations' behavior. On practice respect, we compare corporations'behavior before and after financial crisis, it is good for analyzing the mechanism of state property deeply and comprehensive.