英语论文网

Institutions. Increased RPTs also demonstrate a trend towards business group organization rather than the multi-divisional firm of the West. This generates a second research question: how have the volume, ratio and direction of RPTs changed for NOPCs between 2007 and 2011? Related party finance Prior to the late 1990s, SOEs viewed banks as simply a different institution for dispersal of state resources—rather than direct budgetary allocations, loans underwritten by banks fulfilled the state’s resource allocation purposes. As with the reform of the state-owned industrial sector above, however, this changed radically in the late 1990s with a bank bailout, restructuring (and listing) of banks, hardening of loan requirements and payments and institution creation. The Asian Financial Crisis and unsustainable debt ratios were exogenous factors forcing policy changes to corporate finance. Although figures vary, triangular debt8 and non-performing loans (NPLs) reached massive ratios by 1996, with some sources claiming as much as 100% of GDP on the eve of radical reorganization (Cao 2000; Sun and Tong 2003).9 The 1999 bank recapitalization—in which bad debt was hived off bank balance sheets, liquidity was injected, and four asset management companies (AMCs) were formed to try to recover bad bank debt—signaled another institutional intervention as part of the new package of reorganization and restructuring measures begun in 1997-8. While existing debt was written off and triangular debt retired through debt-equity swaps and legal person shares, newly organized business groups would no longer have access to soft loans with easy repayment terms (Morris et al 2002). Yet it is still true that corporate finance comes mostly from loans at state-controlled banks, and that these loans are mostly made to state-controlled businesses accessed through political connections (Su 2005; Jian and Xu 2012). Besides these external financing options, business groups have internal financing options such as ‘finance companies’ ( caiwu gongsi) that take group subsidiaries’ deposits, make loans and provide credit for business operations that otherwise could not take place (Keister 2000).10 Other internal financing mechanisms include direct loans from controlling shareholders or shareholders’ subsidiaries, loan guarantees and ‘informal’ finance, such as net receivables and net other receivables. They represent business goods and services already sold or purchased, respectively, but not yet paid for. While these are standard accounting measures in the balance sheets of listed companies to account for assets and liabilities, they take a different valence in the context of related parties (Jian and Wong 2004).

In particular, ‘other’ accounts receivable (qita yingshou kuan) refers to transactions where capital is due to be paid to the Triangular debt refers to, for example, accounts receivable by company A from company B, who has accounts receivable from company C, who in turn has accounts receivable from company A. Since each waits for the other to pay before paying its own creditors, all the debts remain outstanding. See Steinfeld (1998). 9 Naughton (2007) claims one-third of GDP in NPLs alone. 10 Sources differ, but somewhere between 80 and 150 business group finance companies continue to exist today. According to the website for the China National Association本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。