Research Of State-owned Enterprises Refinancing Internal Risk Control In China

With the commodity economy and financial markets continue to develop, domestic and international competition intensifies, companies are facing growing financial risks. In particular the 21st century, with the establishment of global financial integration environment, National companies sensitive to international risk rising, the risks faced by the enterprises are rapidly increasing. For example, with the outbreak of the credit crisis in the United States 2007, some famous and veteran financial enterprises which have hundreds of years of history, such as real estate investment trust (American Home Mortgage), have filed for bankruptcy protection and are facing bankruptcy. The crisis swept the world and evolved into a global financial crisis in a short period of time. The financial institutions all over the world have been implicated in very heavy losses. The crisis created largely due to failures of risk prevention and internal control of commercial banks, it make us soberly aware how important it is for state-owned enterprises to strengthen internal risk control and refinancing risk prevention with economic integration in the global environment. Especially after the financial crisis, facing a rare case of development opportunities, the increasingly fierce market competition and increasingly complex financial environment, it has become a practical issue. For the state-owned enterprises on how to further strengthen internal controls, and reasonable financing activities to avoid the risks encountered and reduce risk loss.For the state-owned enterprises, as bears the double burden pressure of the old system and new system development, there is a long-term financing of hunger and thirst. And currently the state-owned enterprises due to its own level of compensation right system reform and capital market problems, financing mechanisms in state-owned enterprises is in a stage led by the banks financing to a market economy system over multi-stage hybrid financing. The financing structure of state-owned enterprises still show many problems, specifically as follows:a high proportion of exogenous financing, the low proportion of endogenous financing; a high proportion of indirect financing, the low proportion of direct financing; a high proportion of debt financing, the low proportion of capital financing, etc. Irrational financing structure coupled with imperfect property rights system and less developed capital markets, managers and other market markets, Resulted in internal control problems are not wellresolved, affecting the economicefficiency of state-owned enterprises, but also restricted the further development of state-owned enterprises. This can be seen most clearly in social burdens of state-owned enterprises as overweight, lack of accumulation, leading to high debt operations of state-owned enterprises. This further increased the difficulty of debt financing of state-owned enterprises, resulting in tension between the banks and, indirectly, affect the financing and so on.Therefore, this thesis attempts to apply the general theory of internal controls and methods of state-owned enterprises to studying the refinancing risk of state-owned enterprises basic methods of internal control, content and financing of risk avoidance. Through analysis of the current status of Chinese state-owned enterprises refinancing, reveals the Chinese state-owned enterprises refinancing problems and conducted genetic analysis, combined with the financing of foreign companies in recent years of practical experience and advanced concepts of the Chinese state-owned enterprises made the refinancing risk of the internal control the relevant policy recommendations. The thesis is composed by five chapters:Chapter 1 PrefaceThis chapter discusses the important significance of researching the re-financing internal controls of the state-owned enterprises in China risk, thesis motivation, the refinancing history and problems of China's state-owned enterprises and the innovation of topics.Chapter 2 Analysis of the theory of State-owned enterprises refinancing internal risk controlThis chapter from the financing and the basic theory of financing risk, Compared under different financing and financial risk of the different characteristics of risk prevention, described the content and features of the business refinancing internal risk control system, proposed refinancing of the state-owned enterprises at all stages of the important role of internal risk control.Chapter 3 China's state-owned enterprises refinancing situation, existing problems and CausesThis chapter first di scusses the state-owned enterprises in China the status of the refinancing, then focuses on the current state-owned enterprises in China during the refinancing problems from national macroeconomic policies, capital market and three state-owned enterprises themselves, and problems and the causes of in-depth analysis.Chapter 4 Foreign enterprises refinancing risk and internal control developments comparison in the EnlightenmentTh i s chapter out I i nes the UK, Japan and Germany and other developed countries the development of financing models the formation and financing mode selection process, combine with the actual situation in our country state-owned enterprises, state-owned enterprises in China raised the refinancing of the internal risk control requires focus on the impact factors and foreign internal risk control models refinancing Enlightenment.Chapter 5 Construction of China's state-owned enterprises for internal risk control system of refinancing policy optionsOn China's state-owned enterprises in this chapter for the internal risk...