On The Problem Of The Diversification Of Property Rights For The Large State-Owned Enterprises In China

Prof. North pointed out that a valid system of protecting property rights is the key to maintain economic growth in a long-term. So the economic growth in China in a long term still depends on the establishment and improvement of property rights system. Specially, the reform of property rights in state-owed enterprises (SOEs) provides the foundation and key. But research in the field can't satisfy the practices of reform. The dissertation tries to fill up this blank. Some important concepts about reform of SOEs are systematically defined and some literatures are reviewed. Focusing on essence of SOEs, the author explores the base and starting point of the theory and practice of reform of SOEs,and then concludes the approach to diversify property rights of the SOES in China .The diversification of property rights in SOEs means that the bodies with unclear defined property rights exit from SOEs and the bodies with clear defined property rights enter into SOEs by displacement of property rights or the diversification of structures of property rights, so that the relations of property rights become clearer gradually.Essentially, the reform of diversification of property rights in SOEs is characterized by Chinese conditions. On account of the target of the reform in SOEs is to establish the system of socialist market economy. To fulfill this target, we should not only maintain the main status of state-owned system, but also improve economic efficiency. Only if the diversification of property rights for the SOEs is achieved, the dual goals mentioned above could be fulfilled. Both of profound economic logic and reality of state-owned corporation support diversification of property rights. After nailing down the principal, target and task, the methods of diversification of property rights, the author mainly addressed ways of implementing the diversification of property rights.One of the important approachs to diversify property rights of SOEs is to make property rights transacted in market. The transaction of property rights of SOEs is a complex work, different angle and start point will inpact the result of transacting strongly, so we need innovate institutions.As a systemic work, the diversification of property rights needs reform of state-owned property rights in each industries and fields, and institutional innovation about some sectors. In many industries and fields, the reform of basic construction and finance is necessary. In some sectors, the institutions about personnel, income, science and tech, governments'functions, land, and non-public economy need be innovated. It is necessary that different modes put practice into different industries and fields during the reform of property rights in SOEs. About the stages order, it need pay attention to arrangement, approach, strategy and the people who can bear capability.The diversification of entity of property rights and their methods is the dissertation's new thought. Firstly, by institutional analysis and demonstration analysis, the author discuses the importance of changing the structure of property rights of SOEs in which state-owned share is too much, meanwhile opposes privatization. Secondly, the author analyses how to make the structure of property rights rationalization. Some measures may be taken such as adapting strategic layout of SOEs, improving structure of bodies of property rights, changing proportion of state-owned property rights.Firm is a collection of human capital and physical capital. Idiosyncratic human capital has increasing return, so property rights of human capital should be emphasized during the reform of property rights. By transactional costs analysis and principal-agent analysis, the relation between of the diversification of property rights and human capital is discussed. The author points out that the reason of indicating efficiency of SOEs is the lack of institution on human capital of entrepreneur. With dividing, protecting and benefits distributing, idiosyncratic human capital of entrepreneurs, managers and professional staff should be emphasized in the reform of diversification of property rights, while MBO need to practice carefully.The diversification of property rights need combine with some necessary other reform measurements including governments'functions, society insurance, employment and finance. Considering the social conflicts and problems currently, author indicates that the measurements above are helpful to reform of the diversification of property rights and it can work together between aggrandizement of government function within measure and translation of government function. As a sector to supervise and administrate SOEs, SASAC may play an important role to establish reform rules of property rights, employ rules, peel off policy burden and constitute father structure of juridical person. Due to avoid the sector to seek rents, it is necessary to monitor it. Finally, it is an important topic to study and avoid state-owned assets lapse.As another aspect of reform about the diversification of property rights, reputation is closely related to the delimitation of property rights. Successful constructer of corporations'Information system influences the performance of the reform. So it is necessary to make related law, supervise the advanced-managers and SASAC, build databases of Corporations'Information, and periodically make the enterprises information open.