Study Of The Relationship Between Innovation And Development Of The Property Rights Of Small And Medium-sized Private Enterprises

From the different definitions of property rights, this paper analyzes the logical line of property rights economics The traditional economics thinks contracts are complete, there is no property rights in it. Property rights economics thinks that there are contracts in firm, contracts are incomplete. And how to allocate property rights is very important. The efficiency of property rights comes from the matching allocation of residual claim and residual rights of control. Human capital should have residual rights of control and residual claim. This should be a guideline of the innovation of property rights in private enterprises.This paper establishes and discusses the model of private enterprises' reform. It also analyzes the unclear property rights in private enterprises such as the ownership is not clear, assets and the power of debts are not clear, the extra ownership is not clear, human capital is not clear, and power as well as responsibilities is not clear in private enterprises. Because of the unclear property rights, the corporate can't protect the property rights, it also can't set up the effect incentive mechanism and inner governance structure. The company can not build up its power of conpetition either. There is the problem of Insider Control in company. Then the essay proves the innovation of property rights is the core of the third reform of private enterprises with the theory of property rights. The procedure of innovation is to take the sharerefomi and carry out the plan of MBO.Finally, after studying the typical pattern of Rizhao Deli Jewelery company, the paper gives its model of innovation of property rights.