After Accession To The Wto, China's Private Enterprises Governance Model For Innovative Research

In general private enterprises in our country have been family-based governance, which is characterized by non-separation in ownership form management, combination between family and enterprise, disposal of controlling right mainly in family. Because of traditional cultural influence in our country and realistic reasons, family-based governance system is deeply rooted in private enterprises. This kind of governance system under certain term has important function which can promote the development of private enterprises. But with the enterprise's scale expanding and the environmental variety in development, negative influence of family-based governance also gets up to rise further. It start to obstruct development of private enterprises strengthenly.After entering into WTO along with the coming of globalization in economy, private enterprises in our country develops in facing an unprecedented period, also facing the more vigorous market competition. As family-based governance, private enterprises have the limitation for property system, governance mechanism, strategic decision making, human resource development. Private enterprises can not enough to hold tightly the opportunity and cope with the challenge.The theory of property rights and principal-agency suggest private enterprises break through family-based governance in time. By clearing property rights and separating ownership form rights of control, private enterprises should set up modern corporate governance.Governance system's innovation of private enterprises for the importance step is to establish clear property system, to balance every kind of benefits' relation, then to set up muli-subjects' monitoring and controlling system. Reforming and improving the incentive menchism to managers to resolve the problem of agent resulting from governance of enterprises, and setting up an idea of considering man as foundation. After those, private enterprises can gradually transfer into modern corporate governance system from family-based governance system.