A Study Of The Property Rights Encouragement Mechanism For The Managers In Township And Village-Run Collective Enterprises

At Present there is a problem of shortage of vigour and the benefit is onthe decline in township and village-ran collective enterprises in our country.The cause lies in the crux which arises from the property rights of thetownship and village-run collective enterprises. For the managers of thetwwnship and village-run collectiv enterprises, it lacks an effectiveencouragement mechanism. this article is trying to utilize the encouragementtheory, the property rights theory and the theory of the entrust agent approachto make a theoretical and living examples analysis under the existingarrangment of the property rights of the township and village-run collectiveenterprises, and an approch of ways to restructure the encouragementmechanism for the managers of the and village-run collectiveenterprises. The synopsis of this article is as follows:l. A scientific encouragement mechanism which means to seek theequilibrium of humanization and systematization. Thus, it should combinethe manageriai encouragement with the property rights encouragementorganically, but to the managers, the design of the property encouragementmechanism is rather important and its dffect is more better.2. The deep-going problem of the entrust agent is the arrangementof the property rights,under the conditions of the asymmetrical information,establishing the encouragement mechanism which takes the propertyencouragement as the dominart factor to resolve the "agent problem"whicharises from the entrust agent.3. The characteristics of the arrangement of existing township and village-run collective enterprises is that such double-agent mode in which theproperty rights are thegular. This mode lacks effective encouragement and restraint to the managers of the and village-run collective enterprises.The was to restructure and perfect the encouragement mechanism to the managers of the township and village-run collective enterprises are:Separating enterprises from government organizations so as to let theowners of the property be the real controllers of the township and village-runenterprises: gradually carrying out the equity encouragement: Designin ascientific and attractive encouragement mechanism:perfecting the supervision and restraint mechanism.