In China of today, the question during the building of the modern enterprise system in state-owned corporations includes two aspects: one is the insufficiency of encouragement and supervise to managers, the other is nonstandard of the corporate governance structure. This question has been the huge obstacle during the course of the development of the stated-owned corporations. In order to propel the reform of the stated-owned corporations, we should try our best to do two things: the first is to set up positive and reasonable system of encouragement and supervise to managers; the second is to build the standard corporate governance structure. Only by this means, we can promote the efficiency of the state-owned corporate, and prevent the leak of the stated-owned assets.
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