State-owned Heating In The Transition Period Under The Rules Of The Corporate Governance Structure

This paper mainly discusses corporate governance of state-owned heating companies under government's regulation during the transitional period in China. It analyzes the status quo of these companies' governance structure, emphasizes the problems in it during the economic transitional period, and offers ideas or methods of solving these problems, which provides some guidance for the present reform of state-owned heating companies' corporate governance.Through analyzing the principal-agent relationship in state-owned heating companies, we probe into issues like property right and incentive-bound mechanism, and try to provide some guidance in the companies" transitional process. As the fact that the state-owned heating enterprises operate in accordance with the Company Law. the multiple objectives such as country's control, government's policy and public need can be achieved through regulation innovation, property right adjusting and incentive-bound mechanism reform. The paper is divided into five parts.The first part is the introduction. It is mainly about the meaning of the topic, the research objectives and methods, the research ideas and framework, and some innovations.The second part is the literature review. Beginning with the origin of corporate governance structure, based on the summary of researches both home and abroad, we put forward a more accurate and broad concept of corporate governance structure and set forth the importance of it in corporate governance. At the same time, we define the concept and theory of restructuring and regulation, and summarize some relevant theories.The third part mainly analyzes the status quo of state-owned heating companies" governance structure, reviews the development of those enterprises, and analyzes the special technology feature of heating enterprises, which determines the government's regulatory system for heating enterprises and therefore the special governance structure. This part focuses on building the framework of corporate governance, the principle-agency relationship between the government and state-owned heating enterprises, and the classification of the state-owned heating enterprises.The fourth part describes three problems of the state-owned heating enterprises——the not corresponding property rights, insider control and one big share phenomenon. We put forward specific ideas to solve these problems. Through one failure privatization case, we analyze the privatization of state-owned heating enterprises and raise the after-control theory.The fifth part puts forward the way of improving the corporate governance of state-owned heating enterprises from the aspects of improving the manager's compensation mechanism, internal system and external supervision environment.At present, the reform of public enterprises is speeding up. There does exist much inefficiency in state-owned enterprises, which needs to be adjusted. However, their contribution to the community or the society is undeniable, which can never be achieved by general private enterprises. We hope that this article can shed some light on the state-owned enterprises to improve the corporate governance structure, and thus increase the overall efficiency of the corporate structure.