Research On Corporate Governance Of The State-owned Road Transportation Enterprise Group

This article is the Study of Corporation Governance of the State-owned Road Transport Enterprise Group, first of all it is the state-owned enterprises, which have their unique nature; secondly it is the road transportation business with road transport industry characteristics. Road transportation enterprises not only to reach after corporate self-interest, but also to account social benefits, it is not only to protect society, but also to improve business conditions; In addition, it is business groups, a business networks formation within the Groups as net theory said, the relationship in the parent company and between the parent companies, among the subsidiaries and the internal subsidiary company formed a complex network. China's State-owned Road Transport Enterprise Group are set up in the administrative intervention which has its own particularity, except from the perspective of economics and sociology to explain and understand, it need to explain and understand from the perspective of political science. It can be considered the economic transformation of our government in a specific phase of support and rely on a stable and conducive to achieve synchronous development of special political tool.Currently state-owned road transport enterprises in China to expand quickly in size than the increase of the value, although the group has been formed, but the show is "set instead of group" initial scale is, synergy has not been fully reflects but synergies are not reflected. The urgent is to resolve the governance issue which as the complexity of enterprise groups brought. Corporation governance need to solve the ownership and management problem, both the separation of powers by establishing a set of checks and balances with each other, so the system can reduce the cost and agent and prevent operators deviating from the owner's interest to achieve the purpose of protecting the interests of owners, at the same time by full implementation the subject of corporate governance taking to show a capacity to govern and facilitate the formation of the company's competitiveness and enhance corporate value. Both of state road transport enterprises not only increase the value of state assets, but also realize sustainable development, while creating more social benefit.The first chapter described three aspects which are the background and significance of topics, status, contents and methods of the study. Chapter II tells theoretical research of the corporate governance on state-owned road transport enterprises, including theory, business group organizational structure, type, parent-subsidiary control affected the parent-subsidiary model and control model which will be used as the theory of Chapter IV. Chapter III give an analysis on the nature of enterprise groups, the transport properties and internal and external reason on the formation. Chapter IV as the focus of this paper, by theoretical analysis and practical case studied the manage way of the corporation governance of state-owned road transport companies analyzed. First this chapter analyzes the state-owned road transport enterprises to the need for corporate governance groups, and from the state-owned road transport enterprises Group's governance structure, introduced parent-subsidiary control and incentive system on three sections and gain the propose of the state-owned road transport enterprise group problems. Finally by improving corporate governance group, the state-owned road transport enterprises establish an effective control system and improve the Group's incentive and restraint mechanisms to address three major aspects of state-owned Road Transport Enterprise Group Problems. Finally the article proposes the conclusions and prospects.