The Research On Optimization Of Capital Structure Of State-Owned Enterprises And Perfection Of Corporate Governance

The Third Plenary Session of the Sixteenth Central Committee of PRC indicates that we should deepen the reform of state-owned enterprises and improve their corporate governance structure by assets reorganization and structure adjustment, thus promoting their market competitive edge. The reform of state-owned enterprises, whose main content is to establish modern enterprise system, is the key link of all the overall objectives of economic system reform aimed to build up the socialist market economy in our country. And since the establishment and perfection of corporate governance structure are the focuses of modern enterprise system, we can clearly see the especial importance of improving the corporate governance structure and governance mechanism in the reform of state-owned enterprises. Among many factors which result in the inborn defect of corporate governance structure of our state-owned enterprises, the most essential is the deformity of their capital structure. Therefore, optimizing the state-owned enterprises' capital structure has fundamental, maybe even decisive effect on the perfection of corporate governance structure of state-owned enterprises.This thesis begins with the preliminary study on the development of capital structure theory and its relation to the corporate governance, pointing out that capital structure not only influence the enterprises' management performance,performance, but also its governance structure and governance efficiency substantially.On the basis of Chapter One, the paper comparatively analyzes the respective advantage and disadvantage of the two main corporate governance patterns, one in the UK and US, the other in Japan and Germany. Moreover, it discusses the future trend of corporate governance patterns.Chapter Three and Chapter Four lay stress on the analysis of status quo and the cause of the state-owned enterprises' capital structure in our country as well as its influence upon the corporate governance, demonstrating that it is the abnormal development of the state-owned enterprises' capital structure that lead to the inefficacy of its governance.The radical approach to this problem is to optimize the capital structure, which will facilitate the perfection of corporate governance mechanism of state-owned enterprises. In Chapter Five and Chapter Six, the paper discusses the two aspects of capital structure optimization and the external & internal governance mechanism reform of state-owned enterprises, endeavoring to find an effective solution to improving corporate governance of state-owned enterprises.The thesis fully employs the normative and positive basic research methods, comprehensively takes advantage of the fundamental principles and research achievements of modern enterprise theory, modern finance theory, modern fiscal theory and modern management theory and properly uses the relative western economic theories and methods as reference. The paper connects theory with practice, abstract with concrete and qualitative with quantitive, researches the operation mechanism between the capital structure and corporate governance on the condition of the socialist market economy and ultimately offers some kind of reference to the reform of modern enterprise system for state-owned enterprises.