Reform Experience In Guangzhou Radio Group

This paper is a comprehensive case study, which consists of two parts, the case and the case analysis.In the case part, it describes shortly the growth history and the reform story of Guangzhou Radio Group (GRG). It focuses on the description of how to build the modern enterprise system by capital operation and management, when GRG established its enterprises such as Military Communication Corporation, Real estate corporation, Banking Electronics Corporation and Modeling tool Corporation. In the case analysis, basing on the modern enterprise theories, it analyses the root and historical reason of malady which accompanied with the state- owned enterprises. It expounds that the property right could be clear by capital operation and management, it also expounds that a series of problems can be solved which was hardly to be solved in large state- owned enterprises, such as the principal- agent relationship, encourage system and corporate governance. Some comments on the environmental disadvantage of capital operation and management in China has been delivered.