A Study On The Governance Mechanism Of High-tech Enterprise

By reviewing the classical Corporate Governance theory, this paper realizes the Human Capital becomes more and more important in Corporate Governance. The High-tech enterprises present a series of new characteristics comparing to the traditional enterprises, such as the financing structure, the formulating mechanism of core competence, the specialty of knowledge contract, which weakens the importance of material capital, scarcity, and ability to undertake risks. The change of status makes the theoretic foundation of Human capital taking charge of High-tech enterprises. We find the bargaining power of human capital comes directly from the advantages in importance, information, and scarcity by studying the property right, heterogeneity, and ability to undertake risks, which carries out the path to control the ownership right by influencing the design of contract.When studying the ownership structure and governance mechanism in the life-cycle of High-tech enterprises, this paper finds the human capital dominate the governance is the effective organize pattern, the human capital controls all the ownership rights at the seed stage and foundation stage, while the VC's entrance break the balance at the expanding stage and mature stage. The contest for control right causes a series conflicts when the enterprise status couldn't meet the expectation. Basing on the case studying, by distributes the residual claim between the human capital owners, this paper solves problems of incenting, attracting and keeping important stuff, by distributing the residual control right to human capital owners with the enterpriser as the core, to improve the decision-making mechanism as well as standardize the management frame, which could make the enterprise maintain at an ideal state, then the problems caused by contest of control right can be solved radically.