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Debt Financing Of State-owned Enterprises In China To Study

Posted on:2003-04-06Degree:MasterType:Thesis
Country:ChinaCandidate:M DengFull Text:PDF
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It seems that the main reason of the lower economic benefit in Chinese SOEs is the enterprise's debt and most of the enterprise tend to non-debt financing. Is it really true that debt financing has no advantage at all, the lower of asset-liability ratio the better and debt financing is the last way for the enterprise? In this paper the enterprise's debt financing problems are discussed in detail from the relationship between the financial structure and enterprise governance structure, between the financial model and enterprise governance structure as well as the study limiting in the area of the enterprise debt financing in our country. The analysis identified that the debt financing is more positive than equity financing and debt financing is more suitable for SOE in China from the long point of view.From the view of the relationship between financial structure and enterprise governance structure, the enterprise governance structure is the image of the enterprise financial structure, the financial structure is the basement of the enterprise governance structure, the debt financing has more positive encourage mechanism and less moral risk, the rational external financing sequence is debt financing\equity financing.From the view of the relationship between financial model and enterprise governance structure, the financial model exerts influence on the financial structure. The influence will finally reflect to the enterprise governance structure. In China, the SOEs should put the indirect financing main position while making direct financing subsidiary. The policy of the direct financing, especially the bond financing should be developed and perfected appropriately, this policy is good to improve the enterprise financial structure and governance structure.From the view of the study limiting in the area of debt financing in SOEs in China, it is meaningless to only study the figure of the asset-liability ratio. The asset-liability ratio(reflected in the financial structure) rely on the problem of the enterprise property right. To bring the debt financing governance positive affection into play is helpful to deal with the SOEs governance problem and to help SOEs extricate from predicament.From the view of the basement of the establishment of the enterprise and the system of the establishment debt financing, the system factor of the establishment of SOEs debt financing is that in our country the property right system is unsuitable and the property right binding force is weak.In China in order to bring the debt financing into play effectively, it is necessary to reform the enterprise's property right system, to rebuild the relationship between bank and enterprise, to do the best to develop and to perfect the bond market, to establish a debt-guarding mechanisms.
Keywords/Search Tags:SOEs, debt financing, financial structure, asset-liability ratio, enterprise governance structure, property right
PDF Full Text Request
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