An Empirical Study On Profits Factors Of State-owned Monopoly

In recent years, high-profit of state-owned monopoly is so amazing that almost all of monopoly industries in China can be called profiteering industry, behind the profits in the monopoly industry is the widening income gap among the industry and the people sulked, now the high monopoly profits is the one of the hottest topics in China.In this context, the paper give profits of state-owned monopolies an empirical study on influencing factors. Based on the qualitative analysis of the profits and analysis of SCP paradigm theory, theory of organic composition of capital and risk-benefit, the paper select Industrial Output Value which covering business efficiency loss as profit Indicator, At the same time,the paper select the quantifiable factors affecting the industry profit margin proportion of assets, and market power. by the three Indicators to correlation and regression analysis, the main conclusions are: (1) Under the coexistence of different market power and different organic composition of capital, the market power indicator give a greater contribution to the Industrial Output Value, that is, the market power have a big impact on the industry profits than proportion of assets.(2) When the industry market power is generally low, proportion of assets and Industrial Output Value have a positive correlation, that is, in a free competitive environment, there is a certain explanatory power about the contribution of proportion of assets for differences on the industry profits. (3) When the industry market power is generally high, due to the manipulation on the profits and the absence of standardized management , proportion of assets is not correlated with industry profits and that industry profits is explained by market power. (4) The state-owned monopoly get profits mainly through monopoly pricing. Essentially,this part of profits comes from exploitation to the majority of consumers and other manufacturers of, the resulting consequences are the uneven distribution of profits and the widening income gap.Thus, according to results of the research the paper raised some countermeasures of rationalization of state-owned monopoly profits.This study has some theoretical and practical significance to exploring the factors that affect the profitability of monopoly industries, Rationalizating the profits and improving income distribution.