Research Governance In The Design Of State-owned Enterprises

With the deepening of State-Owned Enterprise(SOE) reform, scholars begin to notice the problems arised from insufficient information and incentive incompatibility such as property right, principal-agent relation and supervision. This makes the research for corporate governance sinlcture become an important content in current SOE reform. However China抯 SOEs cannot copy other countries?corporate governance structures but choose a pattern suitable for itself, because corporate governance stmctures vary from technological conditions. economy scales, law frames of different countries. 4 Contingent governance is a mode for designing corporate governance structure according to the logic that all beneflcia]-associator cooperate with each other. It assures every main body with property have equal chance to participate in ownership allocating by appropriate institution, at the same time, it restricts players behavior by mutual supervising mechanism. In this mode, proper restrained profit mechanism is the basis to stabilize the cooperation and makes players behavior in accordance with corporate efficiency. Contingent governance is feasible for it抯 the realistic choice which takes restrains such as environment, institution and traditional path into account, in addition, it is plastic and has its own adaptability, that is in different exterior environments and interior organization characteristics, it has different material form. From this point of view, contingent governance is the guidable mode on corporate governance structure evolvement. This paper begins with the analysis of current SOEs. It discusses the main difficulties in SOEs by comparison, reviews the research process of SOE reform and points out the significance of current SOB reform. Then it put forward the method for SOB governance slructure design棗the theory of economic mechanism design. Afterward it analyzes the SOB抯 governance structure, indicates the framework of SOE, presents the design process of SOE抯 contingent governance structure. It arranges proper institution for different beneficial-associators and suggests some policy advice which are indispensable to carry out governance process. The function of process is to make the incentives, restricts, risks of different beneflcial-associators consistent with their roles II and form the scientific self-restrict and mutual restrained mechanism, so that internal control rights get reasonable setting. To some extent, it solves the problems such as asymmetric information, incentive-incompatibility, asymmetric liability which have heavy effect on efficiency, it provides feasible method for SOE reform.