China's State-owned Enterprise Model Of Corporate Governance And The Governance Mechanism

With the development of modem system of company, corporate governance concerning how to distribute right and responsibility has been paid more attention. Facing the period of economic transition, and in the case of joining WTO of China, how to promote the competence of state-owned enterprises will touch upon if the Chinese economy can break through the thread of foreign competitive company group and enter into the world market. So, it will have historic meaning for China to break down the bottleneck of corporate governance. In this article, after analyzing the condition of corporate governance of state-owned enterprises, appropriate corporate governance models adapting to different kinds of enterprises are selected. By analyzing and comparing three types of international governance models: familysupervision and internal supervision and external supervision, a conclusion is drawn that different types of models of corporate governance have different corporate mechanisms matching with them. So the model of governance we selected for state-owned enterprises should be consist with our national conditions. Because of different serve aims, the state-owed enterprises are divided into two types: non-competitive type and competitive type, and different types should have different governance models adapting to them. After discussing the relationship between governance model and governance mechanism, in order to improving the governance models, the market system and internal governance mechanism must be constructed and innovated quickly. The concrete steps include that the markets of manager and capital and product should be rebuilt, and the arrangement of right and responsibility in the internal governance structure should be renewed and reformed. In the end, on the account of internal control of manager, a rationalization proposal about corporate governance is put forward by a case analysis.