The Research On State-owned Capital Management Budget Effect On State-owned Enterprises Operating Performance

As the insurance of the opinions of the try-out of state-owned capital management budget by the State Council in September 2007, the state-owned capital management budget system in our country is established formally, symbolizing the end of the non-sharing profit from the state-owned enterprises in China. Since 2007, state-owned capital management budget system continued development and improvement. In 2008 the law of the People’s Republic of China National Assets Law was promulgated, and the central enterprises formally implemented state-owned capital management budget. With the public of the relevant policies by the Treasury Department and the State Asset Supervision and Administration Commission (SASAC), the enterprise monitored by SASAC, which included into the state-owned management budget, increased to 832 households in 2015. However, another reality must be noticed:one is that there are still about 4000 households’ central enterprises (assets accounted for about 11% of central non-financial enterprises) not in the column; the other is that 22% of 86.258 billion RMB from state-owned enterprises has been invested into buildings, commercial, tourism and other unimportant industry or uncritical areas. A decision on major issues concerning comprehensively deepening reforms approved by the 18th Central Committee of the Communist Party of China (CPC) in 2013 puts forward that "investment in state-owned capital operating service national strategic target", "strengthen the state-owned assets supervision and administration mainly by capital management" and "perfect state-owned management budget system, improve the proportion of the state capital gains turned over to public finances to 30% till 2020, in order to protect and improve the livelihood of the people". In April 2014, the Treasury Department released the circular on further improvement of the charge ratio of central state-owned capital gains, redefining the rate of central state-owned enterprises dividend paid, and increasing the proportion of the on the existing basis by 5 percent. Under the realistic background, it is particularly necessary and urgent to examine the effect of state-owned capital management budget system systematically:whether state owned management budget is conducive to the growth of state-owned enterprises operating performance? Does the proportion of state-owned capital gains effectively improve the performance of state-owned enterprises under the current system? These are the main issues to be studied in this thesis.In this thesis, research method combining normative research and empirical research is used. Firstly, it expatiates on the research background and research significance, and further review the literature at home and abroad. Secondly, it defines concepts of state-owned capital, state-owned capital management budget, and the state-owned capital income and so on. Furthermore, it analyzes the correctness of assumptions related to the state-owned management budget using empirical research methods with the example of central listed company. Finally, according to the test results of the empirical analysis, it analyzes possible problems and solutions of the current state-owned management budget system, and provides a theoretical basis and practical basis for the further improvement of state-owned capital management budget.This thesis includes six parts:The first part is the introduction. This part introduces the research background and significance. Then it explains the outline of the whole thesis as well as the research approaches used. Additionally, it shows the potential innovations and defects in the end.The second part is the review of literature at home and abroad with summaries providing the basis of research hypothesis.The third part is theoretical basis, current policy and hypothesis proposing. This part describes the theories related to state-owned capital management budget from four aspects. This part also defines the concepts and policy in the thesis such as state-owned capital, state-owned capital management budget, central state-owned capital management budget and the state-owned capital income. Based on former analysis, it puts forward research hypothesis.The fourth part defines research vitiates and establishes research models by setting central listed companies in SSE(Shanghai Stock Exchange) & SZSE(Shenzhen Stock Exchange) as research samplings.The fifth part conducts the statistical analysis, correlation analysis, regression. analysis and robustness test for positivism model, providing practical evidence for state-owned capital management budget.The last part is the advices and research conclusions. Based on the analysis in the fifth part and prior studies conducted by other scholars, this part gives some advice on how to improve state-owned capital management budget.In terms of theory research, this thesis systematically describes concept definition, theoretical foundation related to the state-owned capital management budget. In terms of empirical research, regarding implementation of state-owned capital management budget as starting point, this thesis explores the effects of state-owned capital management budget’s implementation and state-owned capital gains charge on the operation performance of state owned enterprises. In this way, this thesis is able to provide a profound evidence for the implementation of China’s current state-owned capital management budget system and its future perfection. Because of knowledge and time, there is some limitation of theory research in this thesis. In terms of empirical research, the data of local state owned enterprises had not be put in this thesis.