China's Finance Study On Influence Of Environment On The State - Owned Enterprise Capital Structure Decision

Because of the quite different financing environment, the western capital structure theory can hardly explain the capital structure formation mechanism in Chinese state-owned enterprises. Including financing environment to the analysis of capital structure decision, this paper puts forward the EM model. Start with researching the particularity of Chinese financing environment, and tries to find out the drive of the capital structure formation in state-owned enterprises.Applying the idea of the EM model, this paper analyzes this problem in respect of history and institution. In the 2nd and 3rd chapter, Firstly the characteristics of the financing environment in the Planned Economy and the Double-Track Economy is described, then the effect mechanism of the environmental factors in the two stages on state-owned enterprises' capital structure is analyzed, in the end, this paper concludes that the capital structure decision in state-owned enterprises is dominated by the financing environment, and this mechanism result in a series of problems. In order to solve these problems, two aspects must be considered, the financing environment and the enterprise institution. Because the change of environment is relatively slowly, in the short run, mastering finance technique, such as scientific capital structure decision approach, is very important for enterprises. In the last chapter, a multi-objective fuzzy optimization model is raised for capital structure decision. It is more suitable for state-owned enterprises than routine models, because many environment factors, which are qualitative and fuzzy, can be quantified and considered into the decision.