On The Governance Of Corporations With State Owned Capital

Enterprise is the main body of market. The study on the development and behavior of enterprise under the market economy is an eternal subject. Guided by the Marxism economics, and using the analytic tools of modern economics, this paper has constructed an analytic framework for the governance of corporations with state-owned capital in order to create an active market economic body on the period of transformation.The enterprise in the market is the economic organization of products and trade, in which, the interest relationships among the owners of different elements during the production activity is the key problem of corporate governance, and the focus of theoretical study on modern enterprise as well. The author has put forward a basic concept-corporations with state-owned capital, which is the main carrier of management, production and organization of state-owned capital. Based on the analysis of the interest relationships among the different owners in corporations with state-owned capital, this paper has studied in details on governance of main body's property right, corporate governance in corporations with state-owned capital, as well as property rights of labor and the arrangement of the ownership of corporations with state-owned capital. This paper has discussed the construction of two-class agent relationship of state-owned capital, emphasized the controlling right of the state owned capital, and expounded comprehensively the distribution of property rights in corporations with state-owned capital. Finally, the paper has put forward a basic idea to deepening the reform of state-own enterprise, that is, the construction of market-oriented and contract-oriented governance system for corporations with state-owned capital.The purpose of the model of market-oriented and contract-oriented governance system is to improve the management efficiency of state-owned capital, to activate the internal energy of the basic economic body in socialist market economy, and just as the slogan put forth by the report of the SixteenthNational Congress of the CPC--'to give full play to all sources of socialwealth for the benefit of the people', to carry out the optimized configuration of production elements and fulfill the best combination of market economy and public ownership.