State-owned Enterprise Performance Evaluation And Incentive

In the past 100 years,the new classical economical theory had been formed which mainly treated the enterprise with technological point of view. The enterprise,which operated by disinterested managers,chose the input-output ratio,aimed at maximizing the profit and also it meant the cost would be minimized.This theory had placed emphasis on the function of technology at general level and also emphasized the decisive effect that the large-scale benefit caused to the enterprise scope at specific level,which was correct undoubtedly.However,this theory had a fatal and obvious defect.The subject named "Separate Ownership from Managerial Authority" proposed by Burghley(伯利)and Miens(米恩斯)broke through the hypothesis which the profit made by traditional enterprise should be maximized and threw down the gauntlet to the theory about factories and stores featured with new classicism at incentive angle,it had an important theoretical value.The classical thesis titled "Character of Enterprise" issued by Cows(科斯)in 1937,The theory on transaction cost was initially created and it explained the significance of existence and expansion of enterprise in this article,which gave a frontal challenge to the theory about factories and stores featured with new classicism. In 1970s,because of development of the economics on transaction cost made by William(威廉姆森)and so on at a hand,and at other hand,because of breakthrough of the micro-economics basic theory such as Information Economics,Theory of Incentives and Principal Agent Theory,etc,The Modem Enterprise Theory has been able to develop quickly originated from Cows(科斯),Burghley(伯利)and Miens(米恩斯).The Modern Enterprise Theory has been developed rapidly for about 20 years and became a frontier and hot field of the modern economics.The incentive to managers working in the State-owned Enterprise(SOE), which is a hot and hard question for study of Economics & Management Science at the present time.In this article,the fundamental inference has been gotten,which the incentive to SOE's managers had been transformed to an effective combination of four mechanisms including remuneration,control power,reputation and market competition from only one leading mechanism by systematic analysis of the connections among enterprise system,incentive mechanism and enterprise efficiency combining with the difficult course along the SOE's system innovation,and the ideas & suggestions for further reform has been put forward regarding to the system &status quo of the incentive mechanism adopted by SOE.The enterprise incentive is becoming increasingly widespread & important,and which is in step with emerging & developing of the Modern-Enterprise System.Under the current economy which the enterprises with Modern-Corporate System occupy the leading position,the relative main theses & literatures around the enterprise incentive has pushed forward the development of Modern-Enterprise Theory,and reflect their profound theoretical value;The relations between the incentive mechanism adopted by the SOE & its enterprise efficiency has become a key issue of the transition economy and reform of the SOE,which fourthly embody the great practical significance on the enterprise incentive.