The Principal-agent Theory And China's State-owned Enterprises On Behalf Of Restraint And Incentive

My article, which consists of five sections, in accordance with construction of my article, talks about the Principal-agency system and the constraint and inspiration problem of our State-Owned Enterprises(the SOEs). The first section: the rising and development process of Principal-Agency theory. This part mainly introduces the rising and development of Principal-Agency theory, which is the branch of the property theory. The second section: the development of Principal-Agency relationship in the Chinese SOEs and the manifestation of constriction and inspiration problem. In this section I have analyzed the manifestation of relationship and the according characteristics and the forming cause of constraint and inspiration problem in the Chinese SOEs. The third section introduces the Principal-Agency model and made simple theory analysis. In the course of seeking the results of the mathematics model, I get several important conclusions which should be paid attention to design Principal-Agency contract. The fourth section: designed the theory hypothesis premise of optimal constraint and inspiration mechanism and entrepreneur theory. I raise entre- preneur theory aiming at identifying and defining under the system of Principal-Agency in the Chinese SOEs, and discuss the correlation relationship between entrepreneur抯 management competence and personal wealth in the process of identifying and evaluating agency. The fifth section: build efficient agency constraint and inspiration mechanism. In this section, I advise some methods to enforce the constraint and inspiration by taking the external and internal environment into consideration, I made analysis of several relatively new constraint and inspiration measure. I hope these point of views could enlighten the state enterprise抯 development, the standard of trust-agency mechanism in state enterprises and the design of constraint and inspiration to agent in state enterprises.