Capital The Right To Speak On

The thesis points out that there exist some problems in current domestic studies on the theory of the firm. There are too many studies that simply .use. the corporate governance theory prevailing in the western world in the practice of China.s reform, but there is too few studies that make an in-depth research on the basis of the corporate governancetheory. There are too much work done in the field of the property rights theory, but less and less studies on the construction ofthe market system. Thus the thesis makes a study in depth into the theory of the firm, and finds out some weaknesses and even logical errors in it. Especially in the theory of the .rights. in the theory of the firm, because the mainstream theory, for its nature of .monopoly rights of the physical capital., deduces only .mono-corporate governance. but can hardly explain the fact that multiple-corporate governance is adominated form in modern companies, the thesis creates a concept of .the Bargaining Nature of the Capital. to solve these problems. The thesis also tries to replace the concept of .the residual rights of control. and .the residual rights of claims. with .the bargaining .rights. of the Capital . and to re-explain the firm theory. The thesis accepts the viewpoint of the contractual nature of the firm. But it differs from the mainstream theory in that the thesis emphasizes the equality nature of the contracts, other than theincompleteness nature of the contracts. So the thesis points out that in theprocess ofa firm.s production so as to generate the organizational rent, every capital owner, no matter he owns the physical capital or the human capital, is always bargaining, and what he gets solely depends on the quantity and quality of his bargaining power of the capital he owns. So the thesis pays more attention to the freedom of contracting and liquidity, that is to say, market system construction is the key factor, and liquidity is also an indicator of the development of the market system. Briefly, the bargaining power of the capital is the negotiation power, possessed by each owner of the physical and human capital in a firm, based on the quantity and quality of the capital. The bargaining nature of the capital shows its power in the whole process of contracts negotiation, executing and ex-post re-negotiation. It shows its power most significantly in the claims on the organizational rent as the rent is virtually its purpose, and the control right is only the mean to achieve the objective. The...