Research On Triangle-Debts Between Enterprise Relationship

This paper reviews the development and evolution process of triangle-debts problem between enterprises since China started its reform and open policy. From the period of economy transition to the initial establishment of socialistic market system, Chinese enterprises have been always perplexed by the triangle-debts problem. It has become the economic chronic and stubborn disease of social development. We apply the meta-synthesis evaluation method in this paper, which widely be used in analyzing organization behavior. As a bold and beneficial trial, it is the fist time we apply it in the domain of analyzing the financial relationship between enterprises. It bases on former and current research data and report, and the most important thing is to coordinate the aspects of self-contradictory under the case of eliminating the false and retaining the true. At last, we do find some certain relationship between the independent variable and induced variable.As for the reason of triangle-debts, we distinguish the reason for two periods. One is for economic transition; the other is for the initial establishment of socialistic market system. With regard to the economic transition, we draw a lesson from the western scholars' analytical formula of the investment effect (D. Fudunberg & J. Tirole, 1985,1986). We believe it is the debts inflation between enterprises causes the periodic reduction of loan, not as most people usually think in the contrary direction. As for the triangle-debts overspreading, we explain it in quality and quantity. The description on quality, we think it due to the system itself. As to its internal mechanism, we use the Bayesian Game theory, a balance analytical method which suitable for the player to select one's strategic choice under incompletion information. Based on the observation of three type of enterprises, that includes monopoly company, maximize profits company and maximize wage company, we draw the conclusion that the main factor of triangle-debts spreading is the thirsty of investment of state-owned enterprise and leaders come from local government. With regard to the initial establishment of socialistic market system, credit loss between enterprises is thekey to this stage.As for the traditional measure that solves the triangle-debts, we introduce and value the four types of them. The first one is eliminating debts between enterprises themselves, and the second one is forming a "liquidation center" powered by state government, the third one is converting debts into shares, the fourth one is right of subrogation. We pay more attention on the management mode of credit sale, which joined with practical experience of the author's. It can control the debts risk effectively by improving the internal credit management. In the chapter four, we give a detail operational process on it.Because the credit system between enterprise is the foundation of solving the triangle-debts, this paper form a credit frame of enterprise credit system from the government credit and making government affairs public, industry credit and self-discipline, individual credit and civil credit service, moral constraint and law compulsion. Followed this, we give the modal a test by making an investigation of current credit relationship between enterprises. Fortunately, the result of investigation is complied with the theory model.At last, we put forward the concept model of solving the triangle-debts from the knowledge of system thinking, and then we explore the next step of the research after giving a sum-up of this paper.