Research On The Institutional Environment And The Corporate Governance Of Urban Construction Investment Corporation

Urban construction investment corporations are important organizational tools to maintain economic growth, expand domestic demand and promote social stability. In the development process, it is commonplace that they have established standard corporate governance structure. However, they usually don’t go in step with the structure practically, causing inconsistency between structure and activity. The scholars of New Institutionalism tried to explain the inconsistency phenomenon with the conflict between technical environments and institutional environments, but we found it doesn’t apply to the urban construction investment corporations. Nevertheless, the corporate governance das not been involved in the present study on urban construction investment corporations, and the study on governance of state-owned company is mainly in the fields of economics and law, neglecting the external environment, it is lack of further exploration of practical logic and inner mechanism of governance.Based on the arrangement of the documents, the study in the article takes an urban construction investment corporation in Hezhou for case to analyze the interactive relationship between institutional environment and corporations and to explore the mmanent mechanism that why the practical activity deviate from the governance structure from the perspective of New Institutionalism. My study mainly found:1. Urban construction investment corporations in China confront complex nstitutional environments which can be divided into three parts:regulatory system, social expectations, government role and its behavior patterns. The government plays:he role of leader in the establishment of the corporations and the inventor in the operations, and builds internal relationships with the corporations, so it affects the corporation’s operation deeply.2. All the elements of institutional environment have certain effects to the urban construction investment corporations. Both the regulatory system and the social expectations require them to set up normative governance structure, but the governmen makes the actual corporate governance deviate from the governance structure an present such a condition that the board of shareholders and that of supervisors perfori practically no function, the board of directors misconduct and the managers ar responsible for the government rather than the corporations due to interfering th governance board. Various elements of the institutional environments have inconsisten requirements on corporate governance, and the corporations take obey strategy t answer these inconsistent requirements, they are not only obedient to the law an regulations, but also to the government, and then the loose coupling of governanc structure and operation has been caused:the corporations establish normativ governance structure, but the practical governance process isn’t entirely in accordanc with the structure, and it mainly operates under the interference of government.3. Owing to the unequal power relations between governments and corporation; urban construction investment corporations have to subject to the interference of th government in the current. So we should change the relations between governments an corporations, supplemented by improving the formal institution, to perfect th governance structure of urban construction investment corporations.4. Seeing from the theory of organization, in addition to the contradictor requirements between technical environments and institutional environments, th non-coordinate requirements to organizations from different institutional environmer system, is also the reason for the loose coupling of structure and operation c institutional organization.