Financing Structure Of State-owned Enterprises Under The Financial Contract

For a long time, due to the imperfect financing system and the invalid inside financing , there is a number of issues in the financing structure of state-owned Enterprises. For example, non-listed state-owned Enterprises over-reliance on bank debt, listed state-owned Enterprises has shares preference in the financing structure. These problems become important factors in the development and the reform of state-owned Enterprises, At the same time, it has a negative impact on the restructuring of many of listed state-owned enterprise and development of the capital market. With the reform of capital supply system, the development of capital market, the development of the financing channels, the state-owned financing structure shows a wide range of diversity. However, the fundamental issues of state-owned enterprises' financing structure remain unresolved, non-listed state-owned enterprises on the debt contract is still soft constraints, the listed state-owned enterprises' equity contract did not play its due role in the improvement of corporate governance.Financial contract theory is one important theory of contemporary financial theories, especially the capital structure theories. This article will analysis the existing problems of the state-owned enterprises' financial with financial contract theories, point out that the root causes of these problems. Then this paper will analysis the relationship between the major shareholder of the state-owned enterprises and managers,creditors,small and medium shareholders in some hypothetical conditions, and make some conclusions about the state-owned enterprises financial structure arrangements with the help of a mathematical model. At the same time in a case this paper will find out the problems that the state-owned enterprises must avoid, the path that the state-owned enterprises must follow in the arrangements of their financial structure. Finally the author of this paper will put forward some concrete proposals about optimizing the financial structure of the state-owned enterprises, drawn out final conclusions, and note some deficiencies in this paper.