Analysis Of Corporate Authority And The Economics Of Centralization And Decentralization

As to the issues of corporation authority, centralization, and decentralization, former specialists and scholars have conducted a great number of researches and have reached huge achievements to some extent. However, according to the existing references, we notice that academicians have not been getting a unanimously idea on the issues, in the meantime analysis on them are not profound enough. All of these indicate that it is necessary to make further search on the issues. The thesis aims at profoundly studying the issues by a bran-new angle. The thesis is divided into 6 chapters as follow:The first chapter is an instruction of the whole thesis, which firstly points out thetheoretical and practical values of the selected title of the thesis, then introducescentralization and decentralization of corporation power-related references in and out of the country, and at last outlines the structure of the thesis and states the possible innovation on the issues.The second chapter is the definitions of corporation authority, centralization, and decentralization. Different from traditional outlook of corporation authority, a new definition is made in this chapter: corporation authority is a kind of multiplex property right, which transfers comparatively complete physical assets and incomplete human asset. Two key points should be hold to better understand this new definition: first of all, corporation authority is a kind of property right, which derives from market exchange. Secondly, to different assets, its property assignment will be conducted in different extent. Especially to human asset, normally, its property assignment possess considerably incomplete trait, and the most prominent representation of this incomplete trait is the share of human asset usufruct by entrepreneurs and laborers. Based on the definition of the corporation authority, the key words of centralization and decentralization are also defined in this chapter as follow: to absolute majority ofpower in a corporation, when it is exercised by one or several persons, we consider the corporation in the condition of centralization; when it is exercised by many persons, we then consider the corporation in the condition of decentralization.The third chapter is the optimized analysis on the centralization and decentralization of corporation authority. According to where property transaction is taken place, inside or between corporations, transaction cost can be differentiated into two basic types: internal and external transaction cost. Majority of references relate totransaction cost focus on analyzing diverse external transaction cost, different from them, the chapter mainly investigate types and source of various internal transaction cost. Using analytical method of transaction cost theory and agency theory for reference, after analyzing the relationships between various internal transaction cost and decentralization extent of corporation power, the chapter attributes the problems of centralization and decentralization optimization to evaluate a minimum sum of various internal transaction cost. In light of these, the model of optimized decentralization extent was put forward, by evaluating the model; we find optimized decentralization extent of corporation power mainly rests with four factors: first, top management's supervision capacity to lower management; Second, lower management's supervision capacity to production worker; Third, lower management's risk averseness extent; Fourth, lower management's work averseness extent; Fifth, uncertainty of corporation's internal condition.The fourth chapter is about decentralization tendency in modern corporations. Just like "everything will go to the extremes, which includes the separate and united thing." it is not invariable for the optimized extend of centralization and decentralization of corporation authority. The negative law in dialectics plays an important role in the area of production and transaction: when corporations' organizational structure transformed from decentralization to centralizati...