A Study On The Debt Financing Structure Of State - Owned Enterprises In China

Since the MM theorem have functioned, theory of capital structure research achievements at home and abroad have quite rich and mature. In our country, most scholars also will remain focused on the capital structure or equity financing. In fact, for most enterprises, the debt is still an important part of enterprise capital. However, compare to the position of debt in the enterprise financing model, scholars pay attention to the theory of debt financing was far from enough. Due to the special basic national conditions in our country, state-owned enterprises has a national reputation as support, relative to the small and medium-sized enterprises and private enterprises, banks and other funds provider is willing to provide capital for state-owned enterprises, debt financing of state-owned enterprises in our country is relatively easy. Therefore, this article combined with the existing theory of debt financing structure and the actual background of the development of state-owned enterprises in our country, through to our country enterprise debt financing structure of the overall situation is described and the key to analyze specific state-owned enterprise debt financing structure is put forward countermeasures of optimizing the structure of debt financing. The author hope that this paper can be used as reference for the optimization of the general state-owned enterprises in our country through the study of a single enterprise results.The main research methods in this paper use summarizing documents method, questionnaire and case analysis. First of all, on the basis of extensive literature reading and retrieval,the author have a comprehensive understanding of the relevant theory of debt financing structure; secondly, the author summarized the basic characteristics of corporate debt financing structure by investigating in China; finally, the author use case analysis method to analyze F enterprise’s debt financing structure, put forward some countermeasures and suggestions to improve the structure of debt financing.This thesis takes large state-owned enterprises of F as the object to study. First of all, the article introduced the background and significance of selected topic, and reviewed the related literature at home and abroad about the debt financing structure. Secondly, this paper introduces the related concepts of debt financing. The debt financing structure can be divided into t component structure of debt and term structure of debt, and details relevant theory of the term structure of debt financing and debt financing. Again, in this paper, the overall situation of our country enterprise debt financing structure are described, as a case study of F enterprises a detailed analysis on the debt financing structure. Finally, according to the problems existing of debt structure in the enterprise F, the author puts forward some countermeasure and the suggestion of optimizing the structure of debt financing from the financing channels, internal management, and other aspects. For example, in the aspect of financing channels, the enterprise F can be extended the debt direct financing channels by foreign debt financing and reduced the cost of financing, and the term of foreign debts is more than a year, it is conducive to improve enterprise long-term debt ratio and optimize the debt maturity structure. And financing rent is to realize "financing money" through the form of "financing material". In the a spect of internal management, enterprise F can encourage executives and employees to take the initiative to optimize the structure of debt financing of enterprises through the establishment of incentive mechanism, and funds centralized management and investment risk management can also be indirect optimize the debt structure. The author hope to provide a new solution of our country state-owned enterprise debt problems existing in the financing structure through analysis and study of F enterprise.The innovation of this paper lies in: so far, domestic and foreign scholars on debt financing structure research has been a long time, the research field is also very wide, includes placement structure of debt, term structure of debt and priority structure of debt, and abundant research achievements have been made. But, previous studies mostly through the empirical study of the influence factors of debt financing. In this paper, based on the research of the concrete enterprise debt structure, it puts forward the concept of component structure of debt, that is the composition of the debt in direct financing and indirect financing. The mismatching of debt maturity structure is one of the leading causes of debt financing risk, and the component structure of debt is one of the important factors affecting enterprises to reduce the cost of financing. Therefore, an enterprise should plan their own debt financing structure after fully considering the risks and costs.