Study On Capital Management Of State Enterprises In China

This paper tries to make a study on capital management of state enterprises by means of qualitative and quantitative analyses. The paper studied the capital management of state enterprises in four aspects. Besides of explaining the meaning of capital management, the first chapter made a rational analysis and comment on the theories of capital management. It's been pointed out that the utility of capital management is definite and the capital management of enterprises is a course of synthetic equilibrium containing lots of factors. The second chapter reviewed the course of reformation of state enterprises and discussed the necessity of carrying out capital management. It's needs of expanding enterprise scale, achieving better economic results, replenishing capital of enterprises, adjusting industrial structure and realizing developmental strategic goal of enterprises that impel the state enterprises to increase their strength and competitive ability and go out of the living crisis by capital management. The third chapter analyzed the practice of capital management of state enterprises and revealed the problems in capital management. It is pointed out that the capital management brings to enterprises not only notable profits but also huge risks. The final chapter put forth some suggests on tactics helpful for the stale tmterprises to carrY Out capital management. Government should lay particular emphasis on bringing the capital management within an orderly orbit by administrative means, economic means and legal means. The main measures include: eveloping actively capital market, istrengthening and perfecting the construction of medium organs, combining the capital management of state enterprises with the adjustment of industrial structure of the national economy, establishing and perfecting social insurance system. The enterprises should make full understand that the purpose of capital management is to increase the strength, achieve beneficial results and realize strategic goal of enterprises. Meanwhile, the proper form of capital management should be selected: onstituting anew in financial affairs, which is to perfect capital structure by way of turning creditor's rights into stockholders rights, separating, splitting up, auctioning and entrusting property rights, bankrupting , reforming into stock company, and going on the stock market for investment, @3constituting anew in management, which strives for maximizing the investment rewards by way of investing combinatively and carrying on merger and acquisition. While carrying out capital management, the state enterprises should pay attention to analyzing and guarding against these risks, bring into play the function of capital market, make consistently a target for raising economic efficiency, use the productive management as a support, and handle correctly the relation between insisting major business and developing diversified undertakings. Only with this, can the capita] management play a positive role in increasing the strength of enterprises.