Study Of The Diversification Of Ownership Structure Reform Of State-owned Enterprises

The task of establishing a modern enterprise system is very significant both in theory and in practice, or we may say that there are lots of practical and theoretical problems waiting to be solved. This paper, based on the author's working experiences in management and system reforming in a big state-owned enterprise, understands the difficulties and puzzles in system improvement of state sector. As many measures advanced for restructuring state-owned enterprises have not worked as people expected, this paper tries to propose the diversification of property ownership structure to solve the problem of property right problems of state-owned enterprises. Also, it studies the impacts imposed by reforming the property ownership structure on the state-owned enterprises' corporate governance structure. This paper pinpoints the direction and cognition of property right improvement of state-owned enterprises, making contributions to state-owned enterprises reform efforts, an unprecedented theoretical and practical exploration.In theory, the state capital in our country belongs to all people, but "people" is a general and nonobjective concept and can't form the personalized property owner. So, the government as the delegate of all people exercises the legal right of ownership to state-owned enterprises. Because of the inconsistency between multiple goals of the government and the single goal of the enterprise, and the disintegration and abuse of the owner's right by a certain department of the government, plus interest conflicts between enterprise controlling executives and residual claim rights by ownership, aculeate antinomy is generated in state-owned enterprises, featured by the integration of government and capital and the absence of ownership of capital. The results are malfunction of corporate governance and high agent costs, causing the state-owned sector into dilemma. Diversification of ownership structure, limited power and responsibility, and legal representative representing the corporate governance, are the three basic characteristics in the modern enterprise organizational theory. They form the basis for establishing a modern business system. Diversified ownership structure is the precondition of separation between investor's ownership and corporate ownership, as well as requirements of decentralization of property ownership and socialization of businesses. Because the state-owned enterprise system leads to no separation between government and enterprise, and cannot solve the problem of absence of ownership, it is necessary to introduce the non-state-owned economic factors, -the genuine property owner whose goal is only to achieve the profit maximization. In light of the legal rights offered to investors by a modern enterprise system, which can effectively control government's intervention leading to the deviation from enterprise's goal, the efficiency of enterprise corporate governance and the transformation of current employment system can be realized, because there exists a non-state-investor. According to the principle of consistency of enterprise controlling right and residual claim right, from the viewpoint of making the management of enterprise aimed at long term goals and getting the active supports and participation from all the employees, the paper demonstrates that it is necessary for managers and employees to have the stocks of the enterprise.By analyzing the different impacts imposed by three different stock structures on the behaviors of the enterprise, the paper puts forward the basic principle for establishing the diversified property ownership structure of the state-owned enterprises, that is, to reduce the ratio of state owned stocks and voluntarily to give up an absolute stock holding position, by forming a concentrated equity structure, with the corporate stockholders as a leading body, the state-owned equity, corporate equity, and private equity to co-exist. Upon this principle, the overall reform proposal for a diversified property right structure is: the state...