Research On The Optimization Of The Corporate Governance Structure Of The Second-class Public Welfare Institutions In China

As a unique type of organization in mainland China,public institutions have taken public welfare as their fundamental purpose since establishment,mainly undertaking the function of providing public services such as scientific research,education,cultural cultivation and health services for the society.Public institutions are the product of the construction and development of socialist public ownership economy in China,and also an important form of the government's service function by using state-owned or public resources in the era of planned economy.However,with the deepening of reform and opening up and the further development of socialist market economy,the challenges such as low efficiency management and service of public institutions,overstaffed personnel,unreasonable allocation of resources,and undiscriminating politics and affairs become more and more prominent.In fact,China tried to carry out institutional reform as early as the beginning of reform and opening up.However,due to the factual lack of sound economic basis and unclear subjective thinking,the reform has come to a standstill.Until 2011,the state further clarified the thinking and began to vigorously promote the reform of the classification of public institutions,classifying the original public institutions into the first-class and the second-class public institutions,and innovatively introducing the construction of corporate governance structure,thus pushing the reform of public institutions into a new phase.The second-class public welfare institutions are the main body of providing public services in China.Because they have certain market allocation attributes,they have also become a natural reform experimentation ground.The construction of corporate governance structure originates from the western enterprise management theory,but it has a far-reaching impact on the Western non-profit organizations and public hospitals which are similar to the second-class public welfare institutions.It can be seen that the introduction of corporate governance structure into the reform of public welfare institutions has both theoretical and practical feasibility and significance.It is true that China has carried out preliminary pilot exploration in Guangdong,Shanghai,Zhejiang,and Chongqing,with relatively obvious results.With the deepening of pilot reform,we still found many major challenges,such as the lack of external macro policies,laws and regulations,the inadequate theoretical concepts and practices,the inflexible models,the lack of internal supporting systems,the irrational corporate governance structure,and the role of the party organization is not clear.Therefore,this paper fully reviews the historical process of introduction of corporate governance structure into the management of public institutions,and then it takes Shenzhen City as an example to study the construction of corporate governance structure of the second-class public welfare institutions in China.Through theory,relevant pilot cases and empirical research,it identifies the problems in the construction process of corporate governance structure of the second-class public institutions,draws on the experience of foreign countries,and gives some thoughts and suggestions on the optimization of corporate governance structure in the hope that it will be helpful to the experiments and exercises in relevant fields in other parts of China.This paper is divided into eight parts.The first chapter is the introduction,which mainly introduces the research background,the main topics,the research purpose and significance,research methodology,innovation points and shortages,with a special focus on the status quo of similar research both at home and abroad;the second chapter summarizes the theory and concept of corporate governance structure of public welfare institutions,in an attempt to trace its theoretical foundation while lay cornerstone for further theoretical discussions.The third chapter analyzes the background and current situation of the corporate governance reform of the second-class public institutions in China.Through describing the background of the corporate governance reform of the second-class public institutions in China,the process of exploration and the pilot reform in various provinces and cities,it identifies the achievements and challenges of the corporate governance reform of the second-class public institutions in China.In the fourth chapter,taking Shenzhen as an example,the author introduces the environmental background of the construction of the corporate governance structure of the second-class public institutions,the exploration of some representative institutions,and the questionnaire survey of the construction of the corporate governance structure of the second-class public institutions in Shenzhen,which builds on top of comparative studies of the survey results from the Southern University of Science and Technology and Shenzhen University.The fifth chapter is to set the corporate governance structure of second-class public institutions in Shenzhen as the study object,demonstrate the factors and effects that affect the construction of corporate governance structure of second-class public institutions from an empirical perspective,which shows that "the policy implementation is not as expected,the role of the board members is not obvious,and the lack of various means for public participation" are the key issues that restricts the progress of the corporate governance structure.The sixth chapter summarizes and analyzes the overseas experience of the construction of the corporate governance structure of the public institutions in Japan,US,and Singapore,which provides helpful insights into overseas experience and provides reference for further research.The seventh chapter puts forward the thinking of improving the corporate governance structure of the second-class public institutions in China from the aspects of objectives,principles,internal and external mechanisms and measures,including the external measures such as improving relevant laws and regulations and policies,optimization of the design of equity investment mechanisms,redesign matching regulations for human resources and financial management,construction of external evaluation mechanism,and establish performance review standard based on specific index;internal system measures include establishment of the principle of matching members of the Governing Council of corporate governance structure,improvement of the internal supervision mechanism,establishment of the operation mechanism of joint governance of multiple authorities,and effective clarification of the duties to the Party and to the Governing Council.The conclusion part summarizes the whole thesis and the research direction in the future.