Corporate Governance Structure Of The Chinese State-owned Listed Film Enterprises

Under the increasingly fierce competition conditions of the domestic mediaindustry，the Chinese state-owned film enterprises hardly become bigger and strongerrely on their own capital accumulation. So the effectively combined with the capitalmarket has become an indispensable part of their development road. In2010, the StateCouncil issued "on the promotion of prosperity and development of film industryguidance" to support film companies to wildly broaden the financing channels, and toactively promote the reorganization and listing of qualified state-owned filmenterprises and state holdings film enterprises. Currently, there were more than20China’s listed film and television companies. China Film Group Corporation andShanghai Film Group Corporation, as the state-owned film enterprises, are alsoactively preparing for listing.The essence of corporate governance is the rights’ arrangement and theinterests’ distribution of the company. Corporate governance structure is a set ofarrangement of rights, division of responsibilities and restraining mechanism of thestakeholders. It is one of the most important determinants of the company’sperformance. Improving the corporate governance structure, is the necessaryconditions for Chinese state-owned enterprises to survive and develop in the highlycompetitive capital market.The study based on the corporate governance structure of the Chinesestate-owned listed film enterprises. The author analyzes the current situation andproblems, and finds the root of the problems, then presents some relevant suggestions.The Chinese state-owned listed film enterprises are the products of the combination ofmedia industry and listed enterprises. In the process of their development, there weremany problems on the corporate governance structure, such as unreasonable degree ofthe ownership concentration, internal staff control issues, uncompleted excitationmechanism. Responding to those problems, the author gives some specific andworkable suggestions. Here some suggestions are: moderately reducing thestate-owned shares of the listed film enterprises, creating and running reasonable,effective institutions and “three commissions”, accelerating development of theprofessional media managers market, building varied forms incentive mechanism,regulating the media capital market, strengthening the fundament of management bycomplete laws and regulations.