Chinese And Foreign State-owned Enterprise Corporate Governance Structure Is A Comparative Study

Since China began to establish the modern enterprise system in 1993, the reform of state-owned enterprises has been carried out for twenty years and has made significant progress. During the reform process, some of the Chinese state-owned enterprises have established standard corporate governance structures and specific decision-making mechanisms. At the same time, in other state-owned enterprises, although the general meeting of share holders, board of directors and board of supervisors has been established, their functions are not sound and the management authority is not effectively balanced. Therefore these enterprises have not established modern corporate governance structures with a proper restraint and incentive mechanism. There are a great many issues to be settled in those enterprises. The improvement of corporate governance structures for state-owned enterprises will be a long-term and arduous task and is an important part of the establishment of the modern enterprise system. Also it will impact the progress and outcome of the reform of state-owned enterprises, additionally is important to enliven the state-owned enterprises. State-owned economy is not a phenomenon exclusive to socialistic countries, but is a widespread economic phenomenon. In western countries, modern state-owned economy came into being after World War II, and has existed for more than half century. The term of "corporate governance structure" was rooted in western economics. And the corporate governance structures applied in China is also learned from western countries. So it's of great practical significance for the establishment of the modern enterprise system in China to analyze the status of corporate governance structures in Chinese state-owned enterprises and study the successful experience of western countries.Firstly, this article reviewed the historical causes and developmenttrends of corporate governance structures in western countries; it then introduced and analyzed cases of state-owned enterprises in western developed countries.Secondly, the article reviewed the historical causes and development trends of corporate governance structure in China; it then analyzed the status of the corporate governance structure of Chinese state-owned enterprises and the problems therein; and brought forward the deep-seated reasons for existing problems in the corporate governance structure of Chinese state-owned enterprises.Finally, the article brought forward several suggestions for the improvement of corporate governance structure of Chinese state-owned enterprises. These suggestions include: (1 )strengthening legal management for state-owned assets and establishing an unified legal system for management of state-owned assets; (2)conforming the management ability of management agencies for state-owned assets and classifying state-owned enterprises to guide the development of industry; (3)adjusting the proportion of state-owned shares in different enterprises to make the enterprises develop in compliance with internal rules; (4)applying feasible management models to different enterprises and reinforcing a restraint and incentive mechanism; (5)further improving functions of the board of directors and establishing effective board mechanisms according to the modern enterprise system.