Thought of Modern Chinese Family Enterprise Troubled Debt Restructuring Institution and Contemporary Significance

Cheng Lin, Zhou Yan

Journal of Finance and Economics Vol. 43, Issue 07, pp. 70 - 82 (2017)  DOI:10.16538/j.cnki.jfe.2017.07.006

Abstract

The troubled debt restructuring of enterprises not only is a very important theme in current Chinese economic development, but also has been the extremely key issue in both practice and theory aspects in modern China, so the exploration of thought of modern Chinese family enterprise troubled debt restructuring institution has both contemporary significance and historical value. Unfortunately, most of existing studies remain at the elaboration of specific historical processes and the examination of some historical concepts, but lack systematic pectination and interpretation of troubled debt restructuring institution. From the perspective of history of economic thoughts, this paper has a thorough investigation on the origin, system design and evolution of troubled debt restructuring of modern family enterprises. It comes to the conclusions as follows:firstly, the propagation and application of the thought of western bankruptcy discharge in the late Qing Dynasty accelerated the transition from Chinese traditional debt settlement institution to modern troubled debt restructuring institution, and laid a foundation for the implementation of troubled debt restructuring institution in family enterprises; secondly, Confucian ethics plays an important role in the formation and development of modern family enterprise debt restructuring institution; thirdly, the thought of modern Chinese family enterprise troubled debt restructuring institution has experienced three stages in general, namely enterprise-leading, bank-leading and trust company-leading, and these changes imply a process from prematurity to maturity. This paper provides not only a more complete picture for the understanding of modern Chinese family enterprise troubled debt restructuring institution, but also historical significance for current enterprise debt restructuring practice in aspects like how to defuse moral hazard, improve the efficiency of capital use and strengthen the effect of debt restructuring.

Keywords

family enterprise; thoughts of troubled debt restructuring institution; evolution; contemporary significance