Study On The Governance Problems Of Private Enterprises In China

Since reform and opening up, while the private economy promote the development of China's market economy, impacted by the transition of China's current economic and market economic of immature, in this condition, private enterprises will inevitably lead to its wide range of issues, and one of the key issue is the issue of corporate governance of private enterprises. At present, the issue of corporate governance of private enterprises has become a constraining bottleneck for further development. In this context, the study of the corporate governance of China's private enterprises has a strong theoretical and practical significance.The study of corporate governance of private enterprises should be established on the correct theory, based on a thorough study in the theory of corporate governance at home and abroad, the making of this paper to find a theoretical foundation. In this paper, the theoretical basis of property rights theory, transaction cost theory, principal-agent theory, stockholder co-management theory. From practice in terms of corporate governance models around the world can be divided into three main categories, one for the country to the United States and Britain on behalf of external governance. The second is represented by the German-Japanese model of internal control. The third is Southeast Asian countries and regions are represented by family-controlled mode. To some extent, these three types of corporate governance of China's private enterprises have a certain reference.I believe that private enterprise should be a comprehensive study taking into account their form of ownership and management, this article should be referred to private enterprises, including individual enterprises, private enterprises, collective enterprises, township enterprises, joint-stock cooperative enterprises. This paper introduced the development process of China's private enterprises at the same time, China's private enterprises into corporate governance in the existence of the following major issues: the issue of property rights, family governance, virtual management structure, and the imbalance between external governance. Despite the current form of the majority of private enterprises to take the form of the company's system, but the actual system run by the company are not many businesses, the reasons for property rights in its structure and there are no substantive changes in corporate governance within the family of serious, non-family members to participate in operational control less, which resulted in varying degrees of virtual management structure. In addition, to truly embody the meaning of market economy and external governance mechanisms are not yet running.At present, China's private companies is not a sound internal governance structure, the external market environment is in the system during the transition period, the lack of perfect factor markets and effective market regulation. Therefore, China's private enterprises, taking into account the actual situation and the external environment, and then around the world to fully draw on the experience of corporate governance, corporate governance of private enterprises is mainly from improving the internal governance mechanisms and external governance mechanisms analysis of two aspects of response to make.Improve the internal governance mechanisms, mainly from the response to explore the following aspects: firstly, to establish a rational system of property rights. China's private enterprises growth and development because of its historical specificity, in the property left a lot of problems, to promote the healthy development of private enterprises, the most fundamental measure is to establish a rational system of property rights, to be clear property rights, to build a wide range of structure of property rights. Secondly , to ensure the independence of the board of supervisors. Private enterprises in China, the majority of cases, the board of supervisors does not have the right to monitor the substance of the board of directors, the board of China's private enterprises should be made to the establishment of a corresponding improvement in order to ensure the independence of the board of supervisors. Thirdly , the introduction of independent directors. Private enterprises in the introduction of independent director system in both the necessity and the feasibility of regulating the decision-making private enterprises, and promote the further development of private enterprises could play a positive role in promoting. Fourthly , the introduction of professional managers. Management of China's private enterprises highly centralized decision-making power, in this case, only the introduction of private enterprise managers dynamic business professionals can make better business development. Fifthly, improve the incentive and restraint mechanisms. This part is mainly on professional managers and supervisors of the incentive and restraint mechanisms.External governance mechanism to improve the response, mainly from the following areas for discussion: firstly, perfect the bound of product market. Full competition in product markets, the market will be selected outstanding businesses, those inefficiencies out of business. In this way, whether as business owners or operators of business enterprises must make maximum efforts, otherwise, they will not be able to survive. Secondly , to strengthen the capital market constraints. Most of China's private enterprises have not yet the realization of the stock market, in which case, we should vigorously promote diversification of ownership of private enterprises, private enterprises as soon as possible to make changes to the listing of public companies, capital markets play the role of external constraints. Thirdly, improve market discipline managers. Managers market to provide business owners an effective screening and quality of entrepreneurship competition mechanism. Fourthly, the role played by government regulation. In order to private enterprises achieve effective corporate governance, the government's macro-control and policy guidance is essential. Government should reform the property rights system, and optimize the equity structure, to improve the external environment, such as measures to promote private enterprise in China to improve corporate governance, and further play on the macro-control of private enterprises and the role of policy guidance.In the current economic situation, China's private enterprises to achieve effective corporate governance, have to achieve the unity of internal governance and the external governance, which is the future develop direction of corporate governance of private enterprises in China. Only we really solve the issues of internal governance and external governance, in order to promote the further healthy development of private enterprises, and make greater contribution for economic development.