The Construction And Economic Analysis Of Law And Compliance Regulatory Regime In Large-Scale State-Owned Enterprises

Along with the development of economy,the legal and compliance risks faced by large-scale state-owned enterprises in our country are increasing in both breadth and depth,affecting their operating performance,sustainable development and the social responsibility significantly.However,the concept of governing by law in society as a whole is still in a development stage.Therefore,the growth of the state-owned enterprises' business indicators still relies on the inertia of development to a certain extent.Meanwhile,state-owned enterprises still have misunderstandings on law and compliance work in concept,and lack of awareness of its importance.However,for the construction and economic analysis of law and compliance regulatory regime in state-owned enterprises,there still lacks a deep level and systematically theoretical research.This study tries to bridge the gap for the existing research by investigating the effect of law and compliance regime on enterprise performance and consequently,demonstrating how to construct the law and compliance regulatory regime of large state-owned enterprises.This study contributes to the literature in the following four perspectives: First,this study uses a series of economic methodology to demonstrate the economic impacts of law and compliance regulatory regime.Second,this study tries to put forward the son of regulation-the theory of internal regulation of enterprises,in addition to the theory of the rise of regulatory state.Third,this study analyzes the economic impacts of enterprise law and compliance regulatory regime by means of causality regression model(difference in difference method)rather than correlation model.Fourth,as to my knowledge,this study is the first study to put forward theoretically the construction framework of law and compliance regulatory regime in large-scale state-owned enterprises,provides useful reference for the regulatory regime of large-scale state-owned enterprises,and promotes law and compliance work to an advanced stage.The organization of the research is as follows:Chapter 1 introduces the background of the selected topic,the significance of the topic,the purpose of the research and Chapter 2 reviews the related literature.Chapter 3 describes the risk and management status of state-owned enterprises.For enterprise risk,although multiple risk management departments such as discipline inspection,supervision,audit and inspection tour are in charge,there are overlaps and vacuums in the functions of these departments.In addition,theinformation within each department are not sufficiently shared.Therefore,the overall effectiveness of the risk management is not maximized,and consequently the goal of risk management fails to achieve.Chapter 4 describes three characteristics of the rise of regulatory state: 1)The government has strict regulatory rules;2)It motivates enterprises to comply with laws and regulations;3)The regulation combining with litigation is superior to litigation.This section also discusses the influence of the rise of regulatory state on the behavior of enterprises,and especially expounds the benefits that can be brought as states to strengthen the regulation of enterprises in the perspective of total social welfare.Chapter 5 extends the theory of the rise of regulatory state and puts forward the theory of internal regulation of enterprises-the son of supervision.And based on the least cost avoider principle,it discusses that the law and compliance regulatory regime plays a more efficient role in all aspects of regulation in the enterprise.Chapter 6 illustrates the causal relationship between law and compliance regime in enterprises and the economic performance of state-owned enterprises through the empirical analysis of the causal relationship model.Based on the studies of law and compliance regime in foreign countries and from the perspective of supply-side reform,Chapter 7 demonstrates how to construct a law and compliance regulatory regime for large-scale enterprises with Chinese characteristics.It elaborates on how personnel are deployed,how institutions are to be set up and how work is to be carried out.Finally,Chapter 8 summarizes the research conclusions and points out the main contributions and innovations of this research,as well as the deficiency of the research and the direction for future further research.