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Along with the deepening reform of socialist market economy, state-owned enterprises keep in pursuing for self values in the competitive market, in order to gain survival and development. Based on changeable market, state-owned enterprises seek for development by adjustment or adjustment by development. Quite a lot of managers focus on decreasing costs, but seldom on capital budgeting, long-term asset investment, or R&D. Even for the sake of certain needs, random capital expenditure is common.doi:10.5539/ijbm.v5n2p217 fatcat:mfbooeps4jfehaf64o24vc3udy