Financial Repression Relationship With Our Corporate Finance Structure

The Financial Structure of enterprise is an important part of the organizational theory ofmodern enterprises. Since early 1990's, some Chinese experts have begun to do some research on it. On one hand, it reflects the change of the system of funding and investments, especially the demand of the change of national income distribution. On the other hand, it also meets the need of the development of Capital Market. Thus it has became an important research area. China is now in the transitional period from planned economic system to market economic system. At present, the financial system is also in the transitional period. A case in point is that Financial Repression lies in social economic activities. It influences the Financial Structure of enterprise profoundly. This paper comments on the Financial Structure of enterprise from the perspective of Financial Repression. The final conclusion is that: In order to improve the Financial Structure of enterprise, we must put forward the development of market economy such as the reform of financial system and enterprises. The development of capital market especially stock market will transform the enterprises' management mechanism, but the transformation must be based on the effective function of the enterprises' inner reform. This is a discovery of the paper.