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On The Control Of State-owned Enterprises Of The Camera

Posted on:2003-02-24Degree:MasterType:Thesis
Country:ChinaCandidate:M ZouFull Text:PDF
GTID:2206360092470618Subject:Public Finance
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Shareholders and creditors are investors of the firm. What are their roles like in corporate governance? The thesis puts forward that good corporate governance is contingent control, and the problem of state-owned enterprises(SOEs) is lack of perfect contingent control; debt-for-equity swap has a good performance in a short term, but it is more important if Asset Management Company(AMC) can improve SOEs' contingent control.This thesis consists of four chapters.Chapter Ⅰ is the theoretical base of other parts, which defines ownership of the firm as residual claim and residual control right, and points out that it is state-contingent ownership. It is from state-contingent ownership that corporate governance is contingent control. It means anyone who can occupy ownership of the firm is contingent upon financial state of the firm. When the firm is normal, its ownership belongs to shareholders; while it falls into financial crisis, its ownership will be transferred to creditors.Chapter Ⅱ analyzes general condition, which contains shareholders' control, creditors' control and transitional passage.When the firm is normal, shareholders possess the ownership of the firm. Shareholders enjoy surplus profit and appoint managers to run the firm. So residual control right and residual claim are separated. By voting with hands, shareholders utilize personnel appointment right and the right of making important policy in order to avoid managers' abusing control right; by voting with feet, shareholders sell share and withdraw from the firm. The selection of two voting depends upon the centralization of stock ownership and the developing level of stock market. If shareholders aresatisfied with the achievement of managers, they will not interfere with managers. It implies that shareholders and managers' control to the firm is contingent, which is dependent upon shareholders' satisfaction.Debt has an effect on control right of managers. It is probably an incentive to managers and restricts them to make inefficient conclusion. When the firm goes bankrupt, creditors will take over control right. They will choose liquidation or restructure.Transitional passage is when and how shareholders' control transfers to creditors' control. The time of transition is the bankrupt line. The scheme of bank syndicate and AHM procedure explain transitional process.Chapter Ⅲ contrasts SOEs' contingent control with general condition.Firstly the reason of SOEs' debt burden is illustrated. State-owned shareholders are distinct from private ones. The function of state-owned shareholders is resolved into several government department. Administrative official can intervene in SOEs by personnel appointment right. Although internal control has emerged since the reform of SOEs began.State-owned banks are chief creditors of SOEs. The soft restraint liability brings up SOEs' serious debt burden and state-owned banks' bad asset. Due to interest motive and acting ability, state-owned banks are not qualified creditors.The bankruptcy of SOEs has a lot of problems. For example, the bankrupt line is different between SOEs and others; local government interferes with the liquidation and restructure of SOEs; creditor banks' interest is not protected effectively.Therefore, it is necessary to lead private shareholders into SOEs, deepen commercial reformation of state-owned banks and issue new bankrupt law as possible as quickly.Chapter Ⅳ dissects debt-for-equity swap which is special contingent control.Debt-for-equity swap makes AMC as a new shareholder of SOEs, which results in new allocation of residual claim and control right. Its speciality including (1) It isn't initiative of state-owned banks, but a related deal dominated by the government; (2) The stock ownership of AMC is common share, but AMC demands fixed profit and forces SOEs to buy back in several years; (3) AMC is a stage shareholder, which is similar to a creditor.After debt-for-equity swap, SOEs and state-owned banks acquire good account effect...
Keywords/Search Tags:contingent control, residual claim, residual control right, shareholders' control, creditors' control, debt-for-equity swap
PDF Full Text Request
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