Inquiry Into Corporate Governance Innovation Of State-owned Enterprises

Chinese reform on state-owned enterprises is an incremental and constant exploring process. With deepening of reform, it is up to agenda to establish the modern corporation institution tallying with the socialist market economic system. The academies pay attention gradually to the corporate governance as the modem corporation institution was being established. Two ingredients may contribute to researchers' favors to these issues:One is from the practical problems facing China in changing its business system, which may be described as follows. 1. The change of organizational forms is so far from the modern corporation institution in nature that a business cannot be run well without the normative corporate governance. 2. The attrition and impediment in the transition of business leadership from the old to the new are so many that solutions to them must be carefully classified and chosen. 3. The general meeting and board of directors are only in name and hence the so-called corporations are of malfunction.The other is from the theoretical problems such as: 1. The issues of residual claim and residual rights of control, the risk taking and return distribution become more and more significant as the discussion of property right is going on and the bodies of property right is clearer, and all of the issues are much concerned with the arrangement of corporate governance. 2. The corporate governance is of importance when the principal-agent model prevails in the medium and large scale of companies and the firm as a contract is incomplete. 3. The debates on the ownership of the firms and principal-agent problems triggered the discussion of corporate governance further.This is the backgrounds in which I started to learn and research the corporate governance and wrote this dissertation. The paper is decomposed of five chapters.Chapter 1 puts forward the problem. It indicates that corporate governance is the breakthrough-point of the reform on state-owned enterprises. Chapter 2 is on the traditional theories of corporate governance. Chapter 3 is dealt with the comparison, comments and direction of the two representatives of corporate governance in the world. Chapter 4 brings forward the selection and control to owner theory. Chapter 5 concerns the applied analysis. It analyses the actuality of corporate governance in stated-owned enterprises and set forth a few innovative suggestions of policy over deepening the reform.