Strategic Research On Preventing The Loss Of China's State-owned Assets Invested Directly Abroad

When domestic investing body entrusts overseas operators to manage state-owned assets, principal-agent relationship is formed between them. However, once domestic investing body does not supervise well operators of state-owned assets abroad, the operators, under the psychology of self-interest, will be able to violate the overall interests of the company and result in loss of state-owned assets abroad because their targets are not consistent and information is asymmetric between them. Preventing and putting an end to the loss of state-owned assets abroad, which has become a hot issue of common concern in governments and academic circles, bears great theoretical value and practical significance.First, the paper starts from the present state of China's foreign direct investment, and then finds that the loss of state-owned assets in China's foreign direct investment is highly grave. Secondly, analyzing the principal-agent chain of management of China's state-owned asset abroad, the present paper finds that "agency problem" will arise very easily,because the chain is characterized as many levels of principal-agent and long-agent-chain. Thirdly, after a detailed analysis of the case of China Aviation Oil (Singapore) Co., Ltd., the paper comes to a conclusion that the main reason for the failure of the company is the serious "internal control", which is due to that domestic investing body does not supervise operators of state-owned assets abroad well. Finally, the present paper sets up the game model between domestic investing body and operators of state-owned assets abroad, and analyses the model under complete information and incomplete information respectively. Then the paper puts forward six strategies to prevent the loss of the state-owned assets abroad, which cover as follows: increasing penalties on operators of state-owned assets abroad who have performances of moral hazard; strengthening internal containment system construction in all aspects of the enterprise; reinforcing the implementation of risk control system; strengthening the financial management system construction; improving the personnel management system; perfecting the corporate governance structure of domestic investing body.