Research On State-owned Enterprise's Institutional Costs

In the economic society, resources are relatively scarce, people engaged in economic activities must consider costs, a cost-benefit analysis to the maximum extent possible to achieve gains. Therefore, economic theory and actual costs is the most core economic activities, from the classical economists, until modern economists, management scientists to study the issue of production costs has never ceased.The main research area of traditional cost theory is the cost of production, known as the cost of production theories. The traditional theory consider as the system of neutral, market transactions are fully competitive market and zero transaction costs of the state means that the traditional theory only in highly abstract sense analysis of the allocation of resources, but not strictly bound to consider the institution and institution costs, which constitute a fatal mistakes on cost analysis to the traditional cost theory. In fact, in actual production activities, the institutional costs not only exist, but their number is very large, which have a significant influence for the production and operation of enterprises. At the end of the 20th century, the bankruptcy of some worldly large companies such as Enron, Arthur Andersen, as well as many of our listed companies'enterprise's problems are caused by the excessive cost of the institution.China's reform and opening up 20 years ago, a planned economy to a market economy transformation also won a decisive victory, but because of the high institutional cost, the state-owned enterprise's benefits on reform were...