Chinese State-owned Enterprises Internal Control

ContentThe insider control means the managers of enterprises control the residual rights to themaximum of their own interests, which is one of the major reasons that leads the state-owned enterprises fall into predicament. To control the insider control problem effectively is a key factor that decides the success or failure of china's reform. Compared with the insider control emerged in the management structure of enterprises in developed western countries which adopts market economy, this issue in China tends to be complicated and varied because of the peculiarity if institutional environment and cultural tradition. Based on the theory of Trust-Agency in western economics, the writer of the thesis incorporates with recent achievements of economics study in china, presents some analyses and discussions of the series consequences and the reasons of the insider control problem and gives out proposal against the insider control problem.The thesis is divided into three parts.Part one, It gives out a theoretical summary of the study on the modern firm at first. Then with the theoretical analysis, it points out that the insider control problem is the by-product of the division of work in modern companies, which arise in the course of China's reform. At the same time, it introduces some study about it at home and abroad.Part two, It inquiries into the insider control problem in the incorporation of state-owned enterprise, and offers some descriptions to the reasons and characteristics about it, then indicate the direction to control the insider control of the state-owned enterprises in China.Part three, Approaches to controlling the insider control are made upon the above analysis, including how to establish effective corporate governance in the state-owned enterprise reform, how to solve the problem so as to reduce agency costs on the premise of separation between government and enterprises the dispute, and the propositions made upon the macro-scheme, etc.