The Effect Of Central State-owned Capital Operating Budget On Enterprise Performance

In 2017,the Ministry of Finance issued the financial notice No.133,revising the “The Method of The Central State-Owned Capital Edit and Report”,which further regularized the standard of the budget compilation work of Central State-Owned Capital.At the same time,it expanded the scope of central enterprises in declaring the budget of state capital operation.This is another essential government paper that comes after the 2016,the Ministry of Finance “The Interim Measures of The Central State-Owned Capital Management Budget”.A series of discussions regarding relevant theories of state-owned capital operating budget have been carried out by academic and practical department.This paper is based on the Financial Report of Listed Companies that controlled by central state-owned enterprises which implemented the A-Share Budget for state-owned assets from 2003 to 2016.This paper utilized the Fixed-benefit model studied the research thesis that whether the implementation of Budget for state-owned assets and increasing the ratio of revenues could improve the operation performance of central state-owned enterprises.This paper confirms the positive correlation between the application of the Budget and the performance of enterprises through the comparison of the revenue of central state-owned enterprises with the implementation of Budget for state-owned assets.The overall sample indicates the positive correlation between the ratio of the revenue and the performance of central state-owned enterprises.However,after grouping the industries,there exists a significant positive correlation between the proportion of income collection and the performance of light assets enterprises.When the proportion of income collection was less than 15%,the correlation between the proportion of income collection and the performance of heavy assets enterprises is positive.Once the proportion of income collection was greater than 15%,there comes a negative but not significant correlation between the two.The possible reason for this phenomenon is that different industries have different demand for capital.In the fierce market competition,higher revenue collection ratio may cast a bad effect on the self-owned capital cycle of heavy assets enterprises,and deteriorates their performances.Thus the author expects to offer a solution for implement of diverse revenue charge proportions for different kinds of companies,based on this empirical research.