Debt Adjustment Of The Capital Structure Of The State-owned Enterprises

For a fong time, the stae-owned enterPrises' capital sturcturehas beccome unreasonable fOr a variety of causes, tO be thecharacteristics of overdebt, which has seriously hindered thedeveloPment of firms and the roe of state-rt ecOnew. sa'"traMng debt into share" POlicy is desboed to solve thisproblem. The POlicy attemPtS to adjust the ratio Of debt to sharUnder the collective effortS Of the governmnt, bank, and firm, to.Me sa' management trictUre reform. AnalyZed forecOndric perspective, the POlicy has a soid theOretic gnUnd ofcapital triCtUr. This wticle ny to pwhe into the effect on"tranwtng debt into share" and the twibility Of sa' capitalsmictUre adjuthent, including the twement Of sa'rnanagement strUctUre reform.W' capital smictUre has become absoutely unreasonablemainly on accoun Of overdebt. FirSt of all, sa' ratio Of debt hasbeen above the normal level. For oole, Th' ratio of debt hasbeen 80% -- 90% while the norml level has been 50% -- 60%accouling to the international standard. ffecondly, nd Of the state-owned enterPrises have been unable to pny debt baCk. So Th'capital StrUctUre gbes frrm bad tO rme.This problem has seriously hindered the ekistence and thedeveloPInnt of the state-owned enterPrises. It becares the first.Mant thing we muSt get around in sa' redri. Analyzed han.."econanc perspective, tranSfondng debt into share" has solidecondric theoretic gnund. On the basis Of the M -- M theorem andtheOYy, the state-owned enterprises should no get overdebt, to avoid..lts gOlng under. On the Other hand, "transfondng debt into share"POlicy can adjust the capital StrUcture and imProve the rnanagementsmicture reform accOrding tO the whern capital strUcture theOry.(Wd mainly by the encouraging theory, the edioning theOry andthe POWr of contol1ing theory)Because Of sound effect Of the POlicy, itS emPirical analysis isnecessary. The firSt examle abeut tranSfondng debt into share isSaving & Inan Association. The study on it will give rich exPerienceto us with measures Of transfondng debt into share. The secondexamle is the Miin Bank SyStem in Japan. Japan is a tyPicalcounny practising the Miin Bank SyStem. The exPerience frOm thenewy-bui1t management strUctUre by transfwtng debt into share willbe useful.In transfondng debt into share, the state--owned enterPrisesshould have focus rather than pursue the whOle ownership orownership withOut principles. Econdric transition has becom aselected conscious process frrm a natural historical process atpresent. Therefore, the criterion Of transfondng debt into share ishew tO get the most benefit in sa' refomi. It's also necessary tOwhnidrize transitional cost and tO optidrize the situation of syStemtransition. For this reason, it is selecting econdric POlicies forW' refomi. Holding onto the transitional orbit to maintainecdric ed and stability is --. bong debt intoshare is the POlicy.But hew to deal with the chng cost is a Pwhlem. Onlythe governrnent can bear the COS, and it is an Oblisation of thegovernmnt. bo it wnld no take effect on trinSfondng debt intoshare if the goe-- wants to shift the cos on to Others'In the course of tranSfondng debt into share, the stae-ooedenterPrises shOuld fOcus on bo problems: one is hew to adjust theekisting ratio Of debt, and Inak Th' capital strUctUre reasonableand the Other is ler to borove the state-owned enterPrises'rnanagement StrUctUre refonn. fferebe, the procedure OftrWng debt into share is as fOlon:1 'Selecting Wts fOr tranSfondng debt intO share. ouy state-wned enteghses with fine pmepect can we chOOSe. Sdriltaneouly,we should achieve the rm beneft in the thenSlertion period.2'twng into intermediny Hizations. Becouse Oftwcial Bank ler in China, rnrcial banks can't hOld sharesof the debto directiy. bo drwing into intenndiare OIganizations intranSfondng debt intO share is essential.3.TranStw deb into share and adjusting...