The Problem Of "Super Saturation Employment" And The Optimization Of State-Owned Enterprise's Capital Structure

The state-owned enterprise is the important part of China economy. Whether its capital structure is reasonable directly affects its capital quality and competition, and the deepening of the state-owned enterprise's reform.As we know, the western capital structure theory is based on the condition of the developed countries, which have comparative perfect market economy. This theory can hardly explain the capital structure formation mechanism in China state owned enterprises, which has the quite different financing environment.In China, the research of the capital structure theory grows with the continuous reform of the state-owned enterprise, and is still in the starting stage.With the working in the state owned enterprise for more than ten years, and after studying the enterprise capital structure theory, I give the proposals for how to optimize the China state owned enterprise capital structure.In the beginning stage of state owned enterprises, because the historyfactor and idealogy, the state owned enterprises didn't control the employment quantity for the benefit as the private enterprises. They hire as many employees as possible, which forms the problem of "super saturation employment". After the policy of open and reform, to ensure the stability of society and the smoothness of reform, the government didn't make the state owned enterprises to cut down the redundant employees. The generation and continuity of "super saturation employment" problem induce the unreasonable state owned enterprise capital structure, and make the state owned enterprise capital structure development difficult.The super saturation employment has serious effect in the short term and in the long term. In the short term, the current liabilities increases, the state owned enterprises will face the pressure of debt and risk. In the long term the development fee and the capital asserts invest are insufficient, the state owned enterprises will be in the disadvantageous position in the market competition.So in the state owned enterprises, the cost of the state owned capital is quite high. The over high capital cost seriously affects the economic benefit of the enterprises'. It will make cash flow out more than flow in, the owner's rights and interests deceases, and the capital debt ratio increases, which will introduce the unreasonable capital structure in state owned enterprises. Solving the "super saturation employment" problem in state owned enterprises, decreasing the state owned capital usage cost in the state owned enterprises, improving the economic benefit in the state owned enterprises, obtaining the ideal debt ratio or debt/rights ratio, making the capital structure reasonable in the state owned enterprises, is a new viewpoint for optimizing the capital structure in the state owned enterprises.In the thesis, the reform and development are necessary for solving the employ problem. For the state owned enterprises, more attentions should be paid to developing the national strategic industry, which will ensure the national economy safety, remedying the market deficiency, obtaining more tax, and solving the employment problem in the indirect way.The paper has five chapters:The first chapter generally introduces the study significance, the study method, the object and the content, the innovation and the deficiency; The second chapter introduces the derivation of "super saturation employment" and the concept of "super saturation employment".The third chapter explains the connotation of capital structure, and introduces the relative theory on capital structure and its evaluation; The fourth chapter introduces the important influence of "super saturation employment" for the state owned enterprise's capital structure.The five chapter gives the suggested policies and advices on how to optimize the capital structure in view of super saturation employment" .Innovations of the thesis mainly lie in the followings:The problem of "super saturation employment" is generalized from the perspective of state owned enterprises history.The characteristics of super saturation employment problem are concluded, the concrete data standard is tried to weigh and define it.The affecting principle is proposed for the super saturation employment on the state owned enterprises capital structure.It is suggested as the new opinion that the problem of "super-saturation employment" should be solved before optimizing the state owned enterprise's capital structure.The new approach is proposed for solving the over saturation employment problem to optimizing the state owned enterprise's capital structure.