Study On The Corporate Governance Of Chinese State-Owned Business Groups

Chinese economy is on the way of transition, which is essential not only for the practical and immediate need of domestic economic development, but also for the objective need of long-term development of Chinese state-owned business groups (thereafter abbreviated as SOBGs). As the emphasis of reform and development, Chinese SOBGs have made great progress and have been the focus of world attention since the mid and late '80s. But, at the same time, there are still many issues that have been hindering Chinese SOBG from developing further for years. These problems include the excessive interference of government, lack of standardized business operation and competence, poor profiting abilities and so on. All those issues can be attributed to institutions, that is, poorly corporate governance. Meanwhile, establishing modern enterprise system is the only way to resolve these problems, and the modern enterprise system mainly refers to standard corporate governance and scientific management mechanism. On the basis of a clear explanation of related literature and theories, this study makes comparisons among four typical governance models of business groups. A systematic and thorough study on the governance structure of Chinese SOBGs during the transition period is made according to a train of thought of finding problems, analyzing problems and resolving problems. The thesis includes seven parts:Part one is introduction in which the purpose, meaning and scope of the study are expounded. There is a general and brief exposition on the study aboard in the part of theoretical review. Meanwhile, this part includes a summary of Chinese state-owned enterprise governance reform in recent years. Then the main differences between corporate governance of single-legalis homo enterprise and that of business group are summed up from the views of the principles, boundaries, scopes, measures and environ -ments of governance. At the end of this section the original points are put forward. Comparisons are the premise of reference, so the second part is the comparisons of four typical types of governance, in which the comparisons of structure of corporate ownership, consists of board and the incentive and supervising mechanisms among United States, Japanese, South Korea and Russia are made according to market-oriented, network-oriented government-oriented systems and transitional economies. The background and reasons that lead to the differences among these four typical models arealso elaborated. There is an inspiration to perfect Chinese SOBGs' governance structure from the comparisons and analysis at the end of each section. Specifically speaking, these inspirations are across holding with in Japanese business groups, the incentive and supervising impacts of independent directors and control right markets on managers in USA, the South Korea chaebols problems exposed in the Asian Financial Turmoil and experience of governance reform, staff representatives' participation in screening in German Konzerns, etc. All above are worth using for reference. Although this part does not insist of the long-term employment system with the main characteristic of inner labor market, the state-owned enterprise supervision from France Parliamentary and legislation for abuse of legalis homo in two legal systems, it does not deny the importance of these content, on the contrary, they are the necessary experiences for regulating and perfecting the governance of Chinese SOBGs. So the study of these contents is in part four and five. Part three is to explain basic theories. Governance of business group is the integration of corporate governance and business group, so the author interprets the theoretical basis from two aspects: the theory of corporate governance and the organizational theory of business group, which comprises the theory of separation of ownership from managerial authority, the theory of principal & agent, stakeholder theory and business group organizational theory, etc. Self-organizational theory is set forth to foreshadow the later...