Research Of Profit Distribution From State-owned Corporation

The State-owned enterprises (SOE) occupy a large proportion of China's economy and the China's SOE reform has always been a focus of theoretical economics research. In the past 10 years, the state-owned enterprises reform programs have yielded fruitful results even if there have been a lot of difficulties. As an inseparate unit of SOE reform from the theoretical to the study, reform on the profits distribution of SOE becomes a hot issue in recent days.However, How to distribute profits? Who make the related decisions? Scholars give diverse answers to these questions in different perspectives, which affect people's thinking. After reviewing domestic and foreign scholars' literature, I explore issues related to the distribution of profits of SOE. These issues include: the history of SOE profits distribution; SOE dividends necessity; the local model of SOE; central share of profits mode selection; the profits of state-owned distribution reform program. Then, I analyze the case of Central Huijin(CH) Company, which is a state-owned asset management company, and come to the conclusion that the CH pattern is able to overcome the problem of profits distribution of SOE. This is also an innovation point of the thesis. CH was set up in the process of China's financial reform, and it is beneficial for the state-owned financial institutions to establish modern corporate governance, and it plays a vital role for the shareholding reform of state-owned commercial banks. Meanwhile, as the shareholder of the listed commercial banks, CH fully made the profit distribution of SOE market-oriented through listing SOE.Based on the above discussion and analysis, the thesis gives some recommendations for the ways and means of profits distribution reform of SOE. First, we should adjust the power arrangement between the SAC, the Ministry of Finance and the state-owned enterprises during the reform; second, given the complexity of China's state-owned enterprises, the reform process must be step-by-step; third, we should distinguish the monopoly profits and normal profits of the state-owned enterprises; Finally, the government should establish appropriate legal norms to regulate the profits distribution of the state-owned enterprises.