The Study Of Property Right And Stimulus-Control Mechanism Constitution Of JinXin Corporation

It is necessary for stated-owned enterprises to withdraw from competitive trades, but withdrawal doesn't mean waiting to die. Stated-owned enterprises must, through the process, carry out property right reform and take the yields of human resource capital into account so as to improve operating efficiency of the enterprises.JinXin Corporation is a medium(small)-sized stated-owned enterprise and lies in an ordinary competitive trade, so, for the stated-owned capital, partial withdrawal from the corporation through property right reform is a logical and realistic choice. This is just the basic idea of the paper. The logic is as follows: in order to further the development of the enterprise, we must stimulate the activity of the management and the employee, but if we want to achieve this goal, we must carry out the property right reform. I, as a manager of the corporation, hope to find a road for the development of the corporation. This is why I select this subject. In this paper, I detail this subject in six parts. In the preface of the paper, the necessity of property right reform for JinXin Corporation is induced from two aspects: one is the common operating dilemma in the stated-owned enterprises; the other is the fact that different property right structure have different efficiency even in the same enterprises. In the first part of the paper, the theory of property right and the theory of stimulus-control are introduced to form the theoretic basis of the paper. The theory of property right considers that property right is the constitution of decreasing transaction cost, and the efficiency of different property right structure is not identical. So property right reform is an effective way to settle the problem of proxy cost and moral hazard. The theory of stimulus thinks, in spite that everyone has multiple needs, the most effective stimulus is property right stimulus. In the second part, after introducing the basic facts of JinXin Corporation, I analyze the main problems in ownership structure and stimulus-control constitution of JinXin Corporation. I found the problems lie in unique ownership structure and imperfect stimulus-control mechanism. So, JinXin Corporation must construct multiple ownership structure through drawing in a lot of non-stated-owned capitals or converting stated-owned capitals into non-stated-owned capitals. The reform can be gradual: first constructing the limited liability corporation(the state , the management and the employee own the stock), then converting into limited company when the time is ripe , eventually listing in the stock market. In the third part of the paper, the detailed operating procedure of the reform is designed. My idea is that: in the beginning of the reform, future stock and the employee stock-ownership plan would be introduced to construct the basic stimulus-control scheme. After several years' development, to improve the stimulus-control mechanism, the scheme of management buy-out would come into practice. In the fourth part of the paper, the effect of the property right reform and the reform of the stimulus-control constitution is forecasted, some problems that we must attach importance to in the operating procedure are pointed out, and the prospect is forecasted. At last, to summarize the paper, I make a review of this paper. The success of the paper lies in the combination of the theory and the reality. The theory of property right and the theory of stimulus-control are completely applied into the practice. Conforming to the specific conditions of JinXin Corporation, future stock, the employee stock-ownership plan, and management buy-out are introduced, and the detailed operating procedure is devised. But I must admit there are some imperfections in this paper, and I hope teachers would point out and help me to improve the paper.