Debt And Corporate Governance Structure

Background of subject selectingIn virtue of influence of state banks' unfavorable creditor's rights and high indebtedness of state-owned enterprise in 1999, Chinese government made an effort to actualize reform scheme by transferring bank's debts to stock of financing and assets management company. On the basis of this environment, the scheme of debts-to-stock has been presented formally. Nevertheless, the performance of this scheme was not inflexible and infeasible during the past four years. Firstly, since many enterprises have not performed modern enterprise administrative system and not erected management structure, the capital benefit of stock hold by capitals management companies descended gradually. However, the further confirmation of new scheme about state capitals management system reform and relative policies presented in Sixteenth Chinese Party provided a new chance to actualize effective stock management for capitals management companies. This policy firstly put forward developing mixed economic system and realized multi-investment party,which is main form from stock-owned system to public-owned system. Therefore, in the process of debt-to-stock actualization general summarization of present background, theory basis and practical actualization are benefitial to improvement and innovation for realizing debt-to-stock government purpose effectively. 2 basic thought and logical structure Utilizing influence of management structure from motivation, restriction and control system based on modern capitals structure theory, this thesis expounded minutely debt recomposing of debt-for-equity swap which lead to transformation of company structure and management system in these companies. In the process of transformation, capitals management companies, as legal stock-holders and carrier of this system actualization, played a leading role for improving management structure in creditor--to-stock companies. Therefore, the research emphasis focuses on how capitals management companies play a role in actualization.The thesis covers five chapters:The first chapter: Background, definition and propose of debt-for-equity swap This chapter primarily introduces the background, definition and historical signification of debt-for-equity swap right policy actualization. Through the analysis of creditor' s right financing and stock financing, thesis drew a conclusion that the signification embodying getting a time to solve long-term problems for state-owned enterprise reform. The second chapter: Actualization and problem analysis of debt-for-equity swap Firstly, the thesis expounds international debt-for-equity swap right actualization. Debt-for-equity swap which is form of debt reorganizing includes not only financial reorganizing but also companies' structure reorganizing management.. Furthermore, this chapter introduces actualization in China, which includes companies' qualification and practical problems. The analysis provides a solution to these problems.The third chapter: Relation analysis between capitals structure and management system This chapter introduces the theoretical basis about companies' capitals structure and management system, defining relation between them. Finally, through cost analysis theory, the author analyzes companies' right agent cost and credit agent right cost. Therefore, this chapter draws a conclusion that stock purchase is not an effective manner for debt-for-equity swap propose because it is not a feasible mode to realize mixed property right.Fourth chapter: Analysis of debt-for-equity swap and companies' management structureOn the basis of companies management structure under actualization of debt-for-equity swap, this chapter defines capitals management companies' active role to state-owned enterprises treatment. Furthermore, the analysis focuses on capitals management companies' incentive factors.Fifth chapter: Advice to debt-for-equity swap According to the description and analysis of above chapters, final part of this thesis put...