The State-Owned Capital Management Budget, Management Incentive And Enterprise Value Creation

Under the structural contradiction of production capacity excess and demand spillover,the state-owned enterprises,as an important carrier of operating state-owned capital,enhance their capability of value creating,which will surely be the key to promote our country's economic prosperity.Since the financial crisis of 2008,our country has adopted various policies to recover the state-owned economy.China's overall economic situation is also gradually showing a good trend,but under the bright prospects of economic development,iron and steel,chemicals and other industries is still showing a loss situation.How to improve the capital operation and value creation ability of state-owned enterprises(especially central state-owned enterprises)has attracted much attention from all sides of the society.The state-owned capital management budget system is the key policy of allocating state-owned capital,supervising state-owned enterprise value creation activities.Since 2007,the central government tried the budget system,has gone through nearly 10 years of experience in exploration and system improvement:in 2010,2012 and 2014,our country expanded the scope of the implementation of state-owned capital management budget and improve the proportion of paid income;in 2014,the newly revised "Budget Law " put the state-owned capital management budget into the overall national budget system;in 2016,"The Interim Measures Of The Central State-Owned Capital Management Budget" provides the state-owned capital management budget system a new framework;March 1,2017 " The Interim Measures Of The Expenditure Of The Central State-Owned Capital Management Budget " stressed the important position of the budget system again.In October 26th,China revised the central state-owned capital management budget compilation method,clearly defined the budget expenditure performance assessment as the public disclosure information,further strengthened the supervision of the state-owned capital operation.In addition,the local state-owned capital management budget system has also been widely spread throughout the country.Many scholars have analyzed the effectiveness of the system by normative research or empirical research,but the results are not the same.One point of view,the implement of the state-owned capital management budget system has suppressed the non-efficiency investment and has promoted the performance of state-owned enterprises;another view is that because of the not in depth implementation of the budget and the related mechanism is not perfect,the effect of the budget system is limited.This paper,on the basis of predecessors' experience,employs 2003-2016 the central enterprises controlled listed companies included in the central state-owned capital management budget as the sample experience,adopts the research methods of combined normative and empirical,explores the effect of the implementation of state-owned capital management budget system and the proportion of state-owned capital gains paid from the central enterprise value creation.And because of the management of state-owned enterprises as the capital operator of state-owned enterprise,whether they effective imply the state-owned capital management budget system,whether they actively enhance the operating efficiency of state-owned capital will affect the effect of the implementation of the budget system.So,this paper explores the effect of management incentive on the state-owned capital management budget system.Finally,based on the conclusions of this study,this paper put forward reasonable policy recommendations.This paper is divided into below parts:Chapter ? is introduction,which introduces the background and research value of the paper,raise research ideas and methods,expounds the possible innovations and shortcomings of this research,and designs the frame of research ideas defines.Chapter ? is literature review,which sort out the literatures related to the state-owned capital management budget system,management incentive and enterprise value creation at home and abroad,then put forward the research points of this paper.Chapter ? is the definition of the concept,theoretical basis and assumptions.First,defines the main concepts,including the state-owned capital management budget system,management incentive and enterprise value creation.Second,through the analysis of investor financial theory,principal-agent theory,budget management theory,dividend policy theory and free cash flow theory,combined with theoretical analysis,puts forward the research hypothesis.Chapter ? is empirical study design,which employs 2003-2016 the central enterprises controlled listed companies included in the central state-owned capital management budget as the research object,the study data mainly from the CSMAR database,and establish inspection model.Chapter ? is the empirical results and analysis,which first is descriptive statistical analysis and correlation of main empirical variables;secondly,is the empirical analysis of the influence of the central state-owned capital management budget system and the proportion of state-owned capital gains paid for the central enterprises to create value,and explore the management incentive effect on the effect of budget system.In addition,is series of robustness tests are designed to verify the regression analysis results.Chapter ? is the conclusion and prospect.In this part,conclusions are made according to the results of the empirical conclusions,and relative policy advices are put forward on the basis of research conclusions.The conclusions of this study are as follows:(1)the implementation of state-owned capital management budget system significantly enhanced the ability of the central enterprises to create value,but at this stage,the proportion of state-owned capital gains paid for the non-positive effect,even showing negative effect;(2)the monetary compensation incentive and equity incentive significantly enhanced the ability of the central enterprises to create value;(3)the monetary compensation incentive promotes the implementation of the state-owned capital management budget system(the proportion of state-owned capital gains paid)create a positive relationship with the central enterprise value creation,the promotion of equity incentive is not significant.Based on the above conclusions,this paper put forward that should:(1)to further expand the scope of state-owned capital management budget,the full implementation of regulatory responsibilities;(2)to improve the proportion of state-owned capital gains paid,expand the mandatory scope;(3)according to the definition of state-owned enterprises,formulate the proportion of capital gains paid for classification;(4)improve the incentive mechanism of the central enterprise management,realize coordination with the state-owned capital management budget system.In order to further improve the implementation of state-owned capital management budget system to provide some experience for reference.In addition,this paper introduced management incentive mechanism to the research are innovation points in this paper.But because the state-owned capital management budget system is a system framework,unable to study completely,this paper only selected the central budget system as the object of study,and only research the corporate dividends data,which may have some differences in the data,this is a limit in this paper.