On The Nature And The Performance Evaluation Rule Of The State-Owned Enterprise

During the past more than 20 years, the essential issue of the Chinese economic system reform is that the reform of State-Owned Enterprise(SOE), Because it is closely related to the transmission from the Plan economic system to the Market economic system. The reform of Chinese SOE is also a really taugh task , because it is a systematic procedure, it will face up to so many difficulties. Should SOE be reformed? How to reform SOE? what the target of the reform? These issues are theoretically and practicaly basics.According to these issues above, The studies on SOE appear. Mainstream economics drow there conclusion that the SOE should be privatized, and lead their research into the discussion on the issue of the recomposition of enterprise and its way. Nevertheless, while the privatization doesn't work, some scholors believe that the performent of the large-middle SOE will be refined by better corporation governance, basing on modern firm theoy, so many literatures about firm theory and corporation governance appeared. the other part of scholors think that the SOE should be privated partly, some of SOEs should be left aside to achieve national goals. These theories above have never get a agreement of each issue, and never formed a study framework of the analysis of SOE.This paper considers SOE as a kind of a institution, we emphasize the importance of the issue of the nature of SOE(ie. the problem of the existance of SOE), and belive it is the basic issue of the thory of SOE, because it help us resolve the problems of how to evaluate and reform SOE. Basing on these three issues, we found a theorical framework of the SOE study.This research point out that: first, SOE act as instrument of policy, and the core function of SOE is to acheive goal of national policy; second, while evaluating SOE's performance, not only take the financial performance of SOE into consideration, but also take revenue and cost of being a kind of instrument of policy into consideration; third, we should consider SOE as instrument of policy, and legislate to control and restrict SOE as instrument of policy, make its cost minimum and its revenue maximum.Our study is elementary and basical, it just point the question of the nature of SOE and some strategies for resolvent of the question of the reform of SOE, but there is also have some important details haven't been invovled in our study.