State-owned Enterprise Managers The Incentive And Restraint Mechanism

The state-owned enterprises (SOE) are the backbones of the development of national economy of China. The magnificence of their economic efficiency and favorable development play a big role in the establishment of the socialistic market economy. For a long period, the study of the issue concerning with SOE has been hot in the field of economics and management. The aim of SOE reform is to establish the modern enterprise system, which is based on the separation of ownership and management right.The agency-principal system, caused by the separation of ownership and management right, will surely lead to the problem of operator motivation and restriction. Hand the claim right to the residue to the operator can achieve the goal of motivation. But the operator's control over the claim right to the residue also causes some problems. By analyzing the character of agency-principal system in China, this thesis put forward a series of solutions of this problem.