The Evoution Of Governance Strutucture Of Private Enterprise In Zhejiang And Ins Cause

The evolution of corporate governance structure is a burning issue in economics world. After analyzing the research we found, most of them use the method of New Institutional Economics and transaction cost as normal analysis formula.Comparing the character of different corporate governance mode, they point out that the cause of evolution of corporate governance mode is transaction cost of governance mode at present is too high, which lead to the loss of the latent economic benefit.Such an analysis method and results of the analysis are questionable. First of all, the premise of using transaction costs is that entrepreneurs can know clearly how much costs and benefits the actions will bring, or that entrepreneurs have known to adopt what kind of governance structure of enterprises, the transaction costs is smallest and income is the greatest. This assumption for the real-world entrepreneurs is untrue, because anyone entrepreneur can not know exactly how much the kind of entrepreneurial activities'costs and benefits in the future.After all, entrepreneurs are limited rationality and have incomplete information. Second, the entrepreneur is a "subjective judgments" persons, rather than behavior who simply implement "classical-style maximizing". Before taking any of entrepreneurial behavior, Entrepreneurs will make a minimum of subjective judgments. This "subjective judgments" will inevitably affect the entrepreneurial behavior choices. Entrepreneurs are social people, SO It is destined that entrepreneurs "subjective judgments" is affected not only by the costs and benefits on the figures, but also by the concept as social people.This article is based on entrepreneurs who have "subjective judgments", to analyze the corporate governance model in the process of evolution. This article resolves the current situation of governance models used by private enterprises in Zhejiang Province.It is well known that private enterprises in Zhejiang Province are started as the family business. After decades of development, model of governance of private enterprises in Zhejiang Province are diversified, but the governance of private enterprises is still family-oriented management style. We further propose the core issue of the article, what factors have led to the normal phenomenon or what factors have led to the change of governance models in Zhejiang Private Enterprises? After further research and analysis, we believe that "psychological costs" determine the change of corporate governance mode. We believe that entrepreneurs are social people, and they can make "subjective judgments", so in the face of changes in corporate governance model, the entrepreneur is bound to have a "psychological assessment", to "judge" and to "anticipates" the "cost" required to pay in the change of corporate governance model. This cost is the entrepreneur's "psychological cost." Here's entrepreneurs "psychological cost" is not a New Institutional Economics'transaction costs. How much transaction costs changes bring can be known after it happened. Entrepreneurs'"psychological cost" are only "subjective assumption" before action,which includes two aspects:One is the economic costs, that is accounting costs, while the other is the social and human costs, that is lost brought on entrepreneurs on social by transformation of corporate governance model, such as entrepreneurs' control over corporate, family honor, expectations that "inherited his father's corporate " and so on. Different entrepreneurs have different "subjective assumption", so the "psychological cost" is different. At different times, an entrepreneur may have different costs in the face of transformation of corporate governance modes. This paper analyzes the transformation of corporate governance mode, from the owners of governance mode to the modern corporate governance model transformation. And divide the process into four stages. We believe the core of the transformation of governance mode is that entrepreneurs and their ability to control the corporate become lower. Deeply affected by "family concept" and "inherited his father's", entrepreneur must have a stronger "subjective reaction", and it will be reflected in the entrepreneurs' "psychological costs". Transition will challenge family-business entrepreneurs and their control over the corporate and entrepreneurs "psychological costs" appear different from individual to individual. Some entrepreneurs'"psychological costs" became infinite, so they will refuse to the transformation.However, some entrepreneurs" psychological cost" are relatively stable, and they will accept the corporate governance model.To further demonstrate this point of view, the author makes a research on 25 private enterprises in the electronics industry in Yueqing City, Zhejiang Province. After obtaining first-hand information, using spss software and doing a correspondence analysis, we verify the issue that entrepreneur's psychological cost is associated with enterprise governance models.