Impact Of Liquidity Shocks On Change Of Ownership Structure

The phenomenon that stated-owned enterprises conducted M&A on private companies as well as bought great shares of them has appeared since the financial crisis after2008. Similar change of ownership structure also happened around the year2004and2005, which is the so-called "the Rise of State Ownership and Reduction of Private Ownership". Based on this background, this paper would find out the reason why ownership structure changes under tightened monetary policies, and how it is impacted.A credit rationing model among banks, state-owned enterprises and private companies is built to prove that private companies, especially small and medium-sized ones, are impacted by credit loans first under tightened monetary policies. When credit rationing happens under liquidity shocks, it shows by the ecological competitive Lotka-Vollterra model between enterprises with different ownership structure that, maximum output decided by environment and competitive relationship change, which results in the dying out of private enterprises and the phenomenon that "the Rise of State Ownership and Reduction of Private Ownership"Empirical study is also conducted on panel data of industrial sectors from1996to2011. As a result, it is found that both macroeconomic indexes and industrial ones impact ownership structure. Macroeconomic indexes include economic growth, monetary policies and interest rate. And the industrial indexes are financing cost, current liability, performance, additional value, debt paying ability, production mode, economies of scales, and sales status.At last, relative policy proposals are given on monetary policies design, reform of monetary system, and reform of ownership structure, hoping that the phenomenon that the Rise of State Ownership and Reduction of Private Ownership can be avoided, and the ownership structure develops towards the way which is good for economic growth.