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Rearrangement of Debts in State-Owned Enterprises and Optimization of Capital Stucture
Yang Rui-long
1997, (6):
12-17,64.
DOI:
As far as an enterprise is concerned,being heavily indebt does not always mean owing too much debt.There are other aspects to be taken into considerat ion too,namely prospect of development,prof it making ability,and the ability to repay capital withint erest.Evidence shows that being too heavily indebt and with too poor ability to repay have become serious obstacles to further reform in state-owned enterprises.The main cause for this lies in the inappropriate capital structure.Therefore,while rearranging debts in state-ownedent erprises,we must take pains to iron out systems that may lead to too much debt,improve the capital structure,avoid over use of bankrupt,and properly balance the interests of the state finance,the bank and the enterprise.
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