The Selection Of Assets Owner And The Ownership System Of The Firm

This thesis is based on the contracts theory of firm drawing a conclusion that the ownership system of the firm is the result of marketing among the assets owners. The basic of the ownership system of the firm is the selection of assets owner. Analyzing with the assumption terms established, under the specific technological environment and system environment, I come to a conclusion that the choice of capital owner depends on his own operating capability comparing with manger's, the share of residual income and creditor's rights income if he lend the money to others, and the choice of manager decides by present operating capability comparing with his past operating capability, the cost of raising the fund. Besides, different enterprises face different technological environments and system environments in different periods. The choice of capital owner and manager depend on technological environment and system environment that the firm faced. At the same time, the realization of the ownership system of the firm depends on the negotiation strength of both sides. So, the optimum ownership system of the firm depends on the management ability of capital owner and manager ' s, the share of residual income , creditor' s rights income, the cost of raising the fund, technological environment, strength of negotiation between both parties and so on. In a word, the optimum ownership system of the firm is the result of both parties' choosing voluntarily. By reason of capital owner and manager facing different technological environments and system environments in different periods, there is no optimum ownership system 9of the firm for all time. But if there is perfect competitive market system and sound legal system, the optimum ownership system of the firm can be formed spontaneously. So the most important thing for us is not to design "optimum ownership system of the firm", but to set up exclusive property right for assets owners, to build perfect competitive market system, to consummate sound legal system. On this condition, the ownership system of the firm can be optimized automatically.