On Optimizing Financing Structure Of State-owned Enterprises

The main problem for corporate financing to solve is how to acquire the necessary capital for development and how to allocate the capitals from different sources in order to match risks with costs. This allocation is financing structure.All the theories about modern coporate financing structure (capital structure)Consider two basic questions:first,can debt replaces stock to increase a firm' value; if yes, then what is the optimal debt quantity? Economists offers various answers according to their researches.In the western society, due to the existence of asymmetric information and agency problem, corporate financing generally follows the practices of first internal finacing, then bond financing, and finally stock financing.Corporate financing system in china lives through different modes of fiscal allocation, bank crediting and market coordination, and the allocation of capital is directed away from the former vertical and administrative ways to freer and marketized ones. As to the transformation of financing institution, the financing structure of firms, especially state-owned enterprises, develops disproportionally:external financing proportions relatively higher than internal financing;Indirect financing higher than direct financing; stock financing. Higher than bond fmacing;and total debt financing higher than equity financing.In order to solve the problem of capital shortage for the state-owned enterprises,adjust and optimize their financing structure, to perfect internal financing system needs first attention.In then should be strengthening internal accumulation institution. Secondly,the normalization and adjustment of the relation between banks and firm. According to the present conditions,China should maintain model of "arm' -length" between them, make the credit between the capital debit and credit sides be truly marketized, normalizded and legalized. At the same time, together with increasing bank crediting and indirect financing, capital markets should be further developed to change the unused social funds into capital funds.In terms of direct financing, corporate bond financing markets is important and needs consideration. And hi stock financingjSpecial attention should be paid to adjust the relationship of financing scale and stock ownership structure.