Performance, Defect And Improvement Of Corporate Governance Of State-owned Enterprises Of China

State-owned enterprises play an important role in China’s economy, which means that the improvement of their operation performance is of great importance. From the perspective of practice, Chinese government has tried to establish perfect governance system for state-owned enterprises via reform to improve operation performance; From the perspective of theory, scholars of home and abroad have conducted mass studies, trying to analyze the relationship between the operation performance and governance structure of state-owned enterprises and the affecting factors, so as to give targeted proposals on the improvement of the system of corporate governance of sate-owned enterprises. So far, however, there are still some problems pending to be solved whether theatrically or practically. Current studies are largely based on the theoretical basis of corporate governance, that is making analysis by using such "single dimensionality" as property right or entrusted agency theories with regard to the relationship and the conclusion is of subjectivity. As the measurement index adopted by empirical analysis method cannot cover all components of corporate governance, leading to inaccurate and unscientific results. In addition, currently, studies on corporate governance mainly analyze structures of corporate governance, but fail to make systematic analysis on the mechanism of corporate governance.This paper made systematic review of studies on corporate governance and performance of state-owned enterprises, and briefly summarized the theoretical basis and method used herein, and based on which basis proposed new consumption on the measurement of the relevance between corporate governance and performance of state-owned enterprises—"Black Box" theoretical consumption and analyzed the relationship through three-stage DEA method. The advantage of this method is that all components of corporate governance can be covered to convert the concept of "corporate governance" which is not measureable into measureable affecting factor and thus obtain the relevance of corporate governance and the performance of state-owned enterprises and the specific relevance (relevant data). Based on the theoretical consumption above, this paper made empirical check for the performance of corporate governance of monopoly state-owned enterprises and competitive state-owned enterprises. The results unanimously show that low level of corporate governance of state-owned enterprises of China (whether monopoly state-owned enterprise or competitive state-owned enterprise) is a key factor lowering the performance of state-owned enterprises. Therefore, it is of great necessarily to deeply study the defect existing in the corporate governance of state-owned enterprises and try to improve the level of corporate governance of state-owned enterprises.Based on the conclusion of empirical check, this paper analyzed the problems existing in the corporate governance of state-owned enterprises from four dimensionalities including internal governance, external governance, governance structure and governance mechanism, and proposed relevant policy suggestions.In terms of internal corporate governance, problems on the structure of internal governance include useless of the shareholder’s general meeting, excessively superposition o f members of the Board of Directors and of the management, role dislocation of managers which are inclined to lead to short-term act, failure to have scientific and reasonable scale of the Board of Supervisors. Therefore, the proportion of state-owned shares for general meeting shall be decreased; the Board of Directors shall have an external directors-based structure and the role of independent director shall be reinforced; the selection of managers shall accord to the actual needs of state-owned enterprises; the independence of the Board of Supervisors shall be ensured and the mechanism for selecting and appointing members of the Board of Supervisors shall be improved.As to the internal governance mechanism, problems mainly include irregular mechanism of decisions-making, imperfect mechanism of supervision and balance and incoordinate mechanism of incentives and restraints. As such, function division of the subject of decision-making shall be cleared, normalization of decision-making procedures shall be enhanced, decision-making system shall be established and perfected, the operation mode of the mechanism of supervision and balance shall be regulated, the supervision function of the subject of supervision shall be reinforced, supporting guarantee conditions for supervision mechanism shall be completed, diversified material incentive mechanism shall be expanded and spiritual incentive mechanism shall be established, the establishment of exogenetic restriction mechanism and endogenous restriction mechanism shall be explored, so as to improve the internal governance mechanism.In terms of external governance of state-owned enterprises, problems on the structure of external governance include imperfect capital market, no mangers market and lack of laws on corporate governance in the current laws system. Therefore, corporate takeover market shall be developed and the scope and extent of the role of non-market power in capital market shall be reduced, independent supervision authorities that can effectively supervise capital market shall be established, professionalism of managers shall be promoted, and the system for assessing and evaluating managers shall be perfected, laws related to corporate governance of state-owned enterprises shall be promulgated.As to the external governance mechanism, problems include underdeveloped takeover market and managers market, and imperfect system environment. Therefore, excessively centralized shareholding structure shall be changed, the establishment of capital market shall be enhanced and the financing channel of enterprises shall be innovated, the establishment of takeover market restriction mechanism shall be strengthened, the external environment of managers system shall be optimized, the manager market restriction mechanism shall be constructed, relevant laws shall be perfected, enforcement of law shall be regulated and self-discipline of the industry shall be enhanced, so as to improve the external governance mechanism.