| Leading enterprises plays a crucial role in the agricultural industrialization, and it is the joint of the farmer and market in market economy. With the rapid development of China's leading enterprises, lots of problems are also exposed, for example, the size of leading enterprises is small and the overall strength is not strong. It is a great significance of investigating the theory and empirical research of leading enterprises, especially the profit mechanism between leading enterprises and farmers. When solving these problems, researchers in foreign country regarded leading enterprise as common enterprises and researchers in our country have made many explorations. However, there are some aspects needed to further study, such as the nature of the leading enterprises, the profit mechanism of leading enterprises and farms, and the characteristics of different models of organizations.This paper initially analyses the nature of the leading enterprise, which is a multi-management enterprise with regional monopolization and dependence on the region. Furthermore, according to transaction costs, the system changes, the game theory, industrial organization, and other relevant theories, this paper also researches the joint between leading enterprises and farmers, determines their different contractual relationships, and explores a perfect profit mechanism which reasonably compartmentalizes the profit of agricultural industrialization. Finally, based on the theoretical and empirical analysis, this paper gives some advice about Chinese leading enterprises and farmers' organizations models. In the institutional arrangements, this paper thinks it should establish a stable mechanism between leading enterprises and farmers, and should choose "Leading Enterprises + Agricultural Cooperation Organization + Farmers" organizational model of leading enterprises-farmers in order to promote the comprehensive development of leading enterprises and farmers. |