M Prison Enterprise’s Finance Performance Problem And Countermeasures’ Research

Since the foundation of new China, with the emergence of the prison management mode which guided by ideology of "transformation-based, production-supplemented", prison enterprises with main place of general economic attributes and special social attributes of prison labor have developed rapidly. However, since the Reform and Opening-up, the deeper development of socialist market economic reforms has done a far-reaching impact on Chinese prison enterprises’development. Face of the sudden change, prison enterprises generally lack a keen ability to respond. All these problems caused a long-term loss of part of the prison companies, or even the brink of bankruptcy. The majority of prison enterprises to survive relied on national funding, which caused a heavy burden to the financial and the prison itself, and some even affect the normal operation of the prison. Combined theory and practice, we studied the Hunan Province’s M prison enterprises’financial performance in these year, and found there were some problems in its profitability, operating capacity, solvency and development capacity, boils down mainly in the consolidated profit poor, inefficient use of assets, the funding gap, a sharp decline in the pace of development and other aspects. In order to analysis these problems, the author conducted an extensive literature research and practice survey, and found that the main reasons for these problems lies in the following aspects:1) uncompleted reformation and imperfect operating mechanism lidded low profitability, inefficient use of assets, low development of enterprises;2) Own lack of accumulated and external financing difficulties caused funding constraints;3) Low dish vivid capacity leaded to inefficient use of assets;4) the personnel structure’s problem caused the overall business inefficiencies. To solve these problems, we suggested to deep the reformation continually, further rationalize the operating mechanism; make an effort of management on cash, accounts receivable and fixed assets to strength the firm’s dish vivid capacity; make efforts to broaden the financing channels through the application of policies and self-optimization, and finally to ease the pressure on enterprise funds; through broad participation of social insurance to solve retired employees’problem; changing the concept of managers and improving employees work skills by strengthening training. In addition, the author also offered countermeasures to implement these measures from the perspectives of policy, system and manager, and showed the expected effect finally.