The Research On Equity Restriction Model Of Joint-Venture Railway Company

Railway is an important basis state facility, and has a very close contact with the development of the national economy. Joint-venture railway is the main form of promoting the diversification of investment subjects, the way it manages the railway has been widely recognized. Over the years, the main equity of joint-venture railway companies constitute by the state-owned shares, this model supports for the construction of infrastructure and ensures the role of public property of the railway industry. However, considering from the business model, the state-owned shares' excessive proportion would make problems for a joint-venture railway company's ownership structure, shareholders'supervision and incentive mechanisms, there are certain problems on the joint-venture railway company's operating performance and such a negative impact to protect and encourage small and medium new shareholders. So it's needed to make appropriate adjustments under the premise of keeping the dominant position of state-owned shares.The paper bases on the theories of corporate governance and equity restriction, analyses the equity governance problems of joint-venture railway companies, and build equity restriction for them. Through relevant literature review, it can be found that the theories of corporate governance and equity restriction has a highly targeted for solving the problems of governance, but there is no research application the theories on joint-venture railway companies. Therefore the paper proposes to analyze the equity restriction of the joint-venture railway companies, in order to enrich the governance theory while avoiding its adverse effects of the single ownership structure.Based on the setting of the premise and assumptions, and according to the feature that it established by several large shareholders, the paper builds ownership structure's game theory model, set the three shareholders structure. It lists the second and the third largest shareholders' profit and loss by the matrix model of different strategies, designs numerical example related to analyze the strategies the shareholders to take under different conditions. The analysis shows that to encourage shareholders to supervise rather than complot, it's needed that the equity ratio between different shareholders should not be too large. Therefore, to organize a Joint-venture railway company, in order to protect the interests of minority shareholders, it need to format by multiple large shareholders based on the leading of the state-owned shares, and the equity ratio between different shareholders should not be too large. It helps to reduce the opportunity of the control power to get the private benefits, and increases the bargaining power of the other major shareholders. At last, based on the analysis of the theoretical model, optimize the equity structure by many ways, including the corporate governance structure and the composition of shareholders, equity management and incentive systems, equity supervision and evaluation and so on.