The Study Of The Benefit Mechanism Innovation For Township Enterprises In Dazhou, Sichuan

It is highly important to develop the township enterprises in order topromote the local economy, to solve the problem of "SAN NONG"(the problem of country, the farmers and agriculture) and to build the fairly well-off society in Dazhou City, Sichuan Province, P. R. China, which is located at Sichuan outlying mountainous area where her economic progress is relatively backward and state enterprises are lack of competition, even though she has abundant human resources, rich natural resources and superior geographical position . The development of township enterprises in Dazhou has lagged behind the average development level in Sichuan and other parts of China. The not well-designed enterprise benefit mechanism is the fundamental reason that caused the township enterprises not to being well developed. Therefore, this thesis is to study how to innovate the enterprise benefit mechanism to promote their development according to the actual situation of township enterprises in Dazhou City.The enterprise benefit mechanism is a kind of economic mechanisms that is used to impel normal operations of enterprises by regulating the distributive relationship of benefit receivers inside and outside the enterprises. This thesis studied the innovation of benefit mechanism of township enterprises in Dazhou City from the following five aspects: 1) the relationship between village collective and collective township-village enterprises 2) the relationship between leading township enterprises in the agricultural industrialization and farmers 3) the relationship among township enterprises 4) the relationship between the owners of the township enterprises that have been reformed and their employees and 5)the family businesses in township enterprises. Furthermore, this thesis initially answered: 1) the fundamental problems and reasons that exist in the benefit mechanism in township enterprises in Dazhou City , 2) the theory behind the innovation and 3) innovation measures.The most basic and the most effective approach leading to the benefit mechanism innovation of village collective and township collective enterprises is the property right reform of the village collective and township collective enterprises.There exist a series of problems including: the guiding ideology and understanding, reform practice, and the cultivation of investment environment in the property right reform of the village collective and township collective enterprises in Dazhou . Therefore, the essential countermeasures to stably advance the property right reform of the village collective and township collective enterprises of Dazhou manifest themselves in: rectifying the guiding ideology, getting out of the misunderstanding circle, cultivating a good enterprise production and management environment, making the reform process open, righteous and fair, dealing well with the masses before the property right reform, and positively supporting the reforming enterprises.It is a strategic choice that the township enterprises in Dazhou City act as the leading part in the agricultural industrialization, which is also the highlight of the development of township enterprises at present. This thesis analyzed the primary linking manners and the weak points between the leading industries and the farmers in the process of agricultural industrialization. Meanwhile, it put forward the key measures of innovation and improvement in the benefit linking mechanism between the leading industries and the farmers by confirming the dominant position of the farmers in the marketplace, adopting diverse benefit linking mechanism accordingly, promoting the farmers systematic level and entailing both of them enjoying common interests. Last but not the least, this thesis emphasized that risk safeguard mechanism must be established and contract management should be enforced.The weak township enterprises in Dazhou City compete with each other sharply for the sake of their own benefits, which results in the vicious competitions among them, even at the cost of crushing the prestigious brands of the local merchandises. We believe that the significant approaches of innovating benefit mechanism among the township enterprises in Dazhou City lie in the transformation of competition concept, the adoption of simulated production model and the setup of trade association.The popular pattern of ownership innovation for collective township village enterprises(CTVE) in Dazhou city is the applying of the stock-cooperative system, in which there are three main problems, one shareholder holding the most of one company shares, and so leading to the inequality of the distribution of all the company shares and interests per share. So the following measures should be carried out, such as building proportionality system of distributing shares,improving corporate governance, properly constraining the voting right of majority shareholders, regulating the proportion of the profit distribution between according to capital and according to work, so as to protect the benefit of both companies and minority shareholders. Meanwhile, in the enterprises transferring into the stock-cooperative system, there are also lots of problems about balancing the benefit among the companies, professional managers, technical innovators, the other core employees and common employees. For example, the incentive award for excellent performance is not attractive for professional managers and the related methods are very simple. This paper thinks that principal—agent problem theory, human capital theory and new classical economic growth theory is encourage vigorously for professional manager person theory basis; on the perfect foundation for professional manager person record check, than much option , the salary of post record wages system is rewarded pattern, it is the effective measure that person is going to encourage for the Dazhou city professional manager of town enterprise that what have specific aim carry out executive stock option(ESO) etc.means.Family businesses form the main part of township enterprises in Dazhou city. The obstacles of family companies in Dazhou city during their development are outstanding. Generally speaking, the size of family companies is small and these companies are difficult to absorb money from capital market. These companies also are not capable of attracting professional managers. At the same time, there are benefit conflicts among members of these families. AH of the above flaws lead to the short life of these companies. The thesis discussed the transfer from the ownership of individuals to the ownership of legal personality, the selection of competent successors, the appointment of professional managers, the innovation of interest systems and other related arguments. The thesis also gave some constructive suggestions to these arguments.