System, Behavior And Optimizing The Capital Structure Of State-owned Enterprises

With the sustained upgrading of our country's marketed-oriented economic transfer,the non-system economy made great progress,but the economic within the system did not.How to vitalize the national economy by reforming the state owned enterprises and make them become the microcosmic base of the socialism market economy with energy and efficiency is a urgent problem of the government,enterprises and scholars.Owing to the great influence imposed on the market value by the capital structure of the enterprises,the problem is solved good or not is crucial to vitalize the national economy and improve the enterprises' performance.The western capital structure theory started in 1950s,with the traditional capital structure being the initial stage.Now after experienced three stages of traditional capital structure theory,modern capital structure theory and new capital structure theory,the capital structure theory is becoming a perfect theory system with many genres and among which the trade-off theory and the pecking order theory are the recognized mainstream capital structure theory.But the domestic correlative theoretical and empirical studies which started at 1990s show that these foreign advanced theories did not give satisfied expression to the financing actions of the state-owned enterprises of our country.The mainstream capital structure theory including trade-off theory and pecking order theory does not fit our country in the current time.So many researchers think that it isn't rational for enterprises to prefer equity financing,but the author don't agree this kind of simple thinking.Based on the special institutional background of transition economy and by analysis of the directly deciding factors to form the capital structure,such as the macro background——transfer economy,the micro background——governance mechanism and the managers' investment actions,this paper got some conclusions that different from before.They are:(1)The neglect and nonstandard of the qualification of research subjects on capital structure is a main reason for the differences between the domestic and the foreign results.The western capital structure theory grew out of countries which are completed market economy,and by use of samples in which that they obtained their conclusions.The basic characteristic or precondition of companies that they used as the research subject is that it can adjust its capital structure actively and flexibly according to the changes of the market without restrain of the choice of financing channels or methods.From this viewpoint,there does not exists research subject that meeting these above conditions.But I think this is one of the main reasons made the foreigners' research methods and conclusions unfit for that of our country.(2)Fast changing of institution in transition economy made it the endogenous deciding power to influence the forming of Chinese enterprises' capital structure.This is essentially different from the western capital structure theory which grew out of completed market economy and looked the institution as exogenous variables and researched the ways of changes of the market how to influence the capital structure under the unchanged institution.The choice of our enterprises' capital structure is mainly decided by the evolution and systematic characteristics of the transfer economy and changes with them.So the characteristics of Chinese enterprises' capital structure in the current time are the reflection of the systematic characteristics in the great degree.(3)Inefficient corporate governance environment at the present stage is an important deciding factor influences the forming of the Chinese enterprises' capital structure.State shares and legal person shares being the main part,high centralization and low Managerial Stockholding Level are the ownership structure characteristics of our country at the present time.That directly leads to invalidation of the enterprise internal control system leaded by board of directors and management incentive and some other internal governance mechanisms.Additionally,most external governance mechanisms including managerial labor market,product market competition,laws for investors' interest protection,debt governance,the market for corporate control etc have their frameworks but did not play their roles in practice.That plays an important role on the forming of the Chinese enterprises' capital structure.(4)Now the law and institution system of macro background of transfer economy and the micro background of inefficient governance mechanism bring convenience to some irregular behaviors including investment.Empirical analysis of this paper show that the managers of state-owned charging share listed companies didn't consider bankruptcy as an important variable,but the managers of non state-owned charging share listed companies did.The "thirst for money" owing to shortage of risk of the manager's investment behaviors plays an important role on the select of capital structure.(5)In the three-side game by enterprises,government and banks,the objective function of governors is Max[I_g,γI_e,a_2g,a_3g]U_g,the objective function of the entrepreneurs of state-owned enterprises is Max[I_e,a_2e,a_3e,β]U_e and the objective function of the managers of state-owned commercial banks is Max[△(L_b-γI_e),C_b,a_3b]U_b,which decide that the governors help state-owned enterprises finance and the managers of state-owned commercial banks give positive respondence to the administration interference are their rational selection.Just based on that,the state-owned enterprises got mostly of all the credit resources,stock market resources and bond resources.(6)At present stage,the capital structure of state-owned enterprises is a comprehensive reflection of the results of interaction among governors,entrepreneurs of state-owned enterprises and the managers of state-owned commercial banks,under conditions of transfer economy,short of social fund,being restrained by financing channels and methods,investment impulsion,inefficacy bankrupt mechanism and governance mechanism.That is the causal mechanism of the capital structure of state-owned enterprises.So we can get the conclusion that the capital structure of state-owned enterprises at the present time is mainly decided by the systematic characteristics of the evolution of the market-oriented transfer economy.So the best way to optimize the capital structure of state-owned enterprises at the present time is energetically boosting the evolution of the market-oriented transfer economy and perfecting the corporate governance mechanism at the same time.