A Research Into The Equity Shares Centralization Of Reformed State-owned Enterprises

It's a major way that reforming the state-owned enterprises through share-issuing enterprises. Many medium and small state-owned enterprises adopted the pattern that the staff-members hold the shares equally. There're some different opinions to the shares being dispersed in the world. Some one insists that the shares should be dispersed because the shares to be centralized are the main cause that the major shareholders encroach upon the benefits of the small shareholders. Some one considers that the shares being centralized can encourage the major shareholders and improve the administrative efficiency. When reforming the medium and small state-owned enterprises through shares dispersing, the effect was good early, but the staff workers may think highly of short term profits and ignore the long term benefits because of the state environments of the economics and laws. To centralizing the shares, it would restrict developing the enterprises, it could enhance the administrative efficiencies and solve the problems that nobody be in charge of because of the share-issuing equalizing, dispose of the contradictions of the residual right of control and the residual return, settle the question of the principal-agent problem and has coursed the moral hazard and negotiating cost of contacts. It also could make the management be positive in the managerial personals. There're two major ways to centralize the shares nowadays. One is strategy invests taking part in; the other is to make management buy-outs (MBO). MBO is the main way at present because it's difficult to search strategy invests. It has haven a new type reform to the state-owned enterprises in Changsha from 2000. Some enterprises have turned into shares equally by the staff-members and so is Changsha Blower Works. But the condition is not very good from analyzing the effects of the reform. The enterprises have some difficulties. Compacting the conditions of now and past, and analysis the same trade, there're such disparities. They did not have the goals that improve the human engineering and enhance the management. There're some appearances that the staffs are equalitarian and ignore the long term developing of the enterprises and focus on the short time benefits. There's a survey in the staffs in Changsha Blower Works some agree the enterprise must take other reform to centralize the shares. This fact also confirms the opinion that the shares should be centralized.