Study On Capital Structure Of State-owned Enterprises In Transitional Periods

Capital structure and financing methods can affect the corporations'financial situation, profitability, management efficiency andcomprehensive competitiveness dramatically. Capital structure also hasan important position in the theory of business finance. Businessvaluation is the core of business governance. We can say that the study ofcapital structure is concerned with all the aspects of economics. Since the reform and opening of China, state-owned enterprisesmake large contributions for national economy. Simultaneously, the deepcontradiction is emerging in transitional periods. The irrational capitalstructure of state-owned enterprises has become the main obstaclethreatening one's exist. On the one hand, the capital structure ofstate-owned enterprises is in the condition of high debt rate. On the otherhand, listed businesses of state-owned enterprises prefer to findinvestment on stock market though they have a much lower debt rate.Therefore, how to optimize capital structure and what is the rationalliabilities level of enterprise, is ensure of enterprise developing and animportant task of enterprise reform. For capital structure, there are ripe theories in overseas. But, thosetheories are based on free computational market. So, we can't use theclassical theories to resolve the problems we are facing directly. We 44should analyze in detail according to the concrete surrounding of China,and take into account our marketlization. Our survey should focus on therelation between the changing process of capital structure and theinstitutional factors. This is the most important inspiration from theclassical theories of capital structure. This dissertation consists of four chapters: In the first chapter, the author explains the concept of capitalstructure, discuss purpose of the survey of capital structure and actions ofcapital structure in enterprise. And analyze factors which determine thecapital structure of certain company.In the second chapter, the author surveys the evolution of the theory ofcapital structure, and explains special institutional meanings to enterpriseof China. In the third chapter, the author describes the condition of capitalstructure of our country, and deeply analyzes factors which causeirrational capital structure of state-owned enterprises. In the fourth chapter, the author introduces and evaluates themeasures optimizing capital structure, and analyzes condition of capitalstructure reform. Finally, the author suggests some reform measures toimprove the irrational condition of capital structure of state-ownedenterprises.