The Profit Sharing Mechanism Exploration Of Our Country’s State-owned Enterprise

The reform of State-Owned Enterprise is one of the essential issues of the Chinese economic system reform, which has made remarkable achievements after a few years of studying and practicing. With the current principal contradiction in our society, the state-owned enterprise reform has focused on the profit allocation of it. State-owned enterprises invested or controlled by the state. On behalf of all citizens, the state has the right of sharing profits which the state-owned enterprises create. Since New China has founded, the state constantly explore the way to reform. And implement a series of policy measures for the profit distribution of state-owned enterprises which can be cut into several periods, from profit total delivery to profit retention, even to profit none delivery in1994in order to strengthen the state economy and rehabilitate state-owned enterprises. In2007, the state published a policy to make state-owned enterprises hand in profit to the state again. This significant measure involved in the relationship among the country, the people and state-owned enterprises. Therefore, How to balance the interests of every part and how to make people share in the fruits of reform and development became new problems. This is not only an economic problem, but also a major issue related to people’s benefit.This paper firstly introduces the representative pattern of foreign countries and reviews the profits turned over to the state-owned enterprises in different historical periods. Then it points out that it is necessary that state-owned enterprises turn over profits in the current situation. Secondly, the real problem and actual situation are analyzed so that can be led to the whole system of turning over profits. Thirdly, there are some shortcomings of the paper.The innovative point of this research is to build a whole system including managers market, stock market, internal control system, disclosure system of information and things so that state-owned enterprises will hand over a portion of profits to the state. These aspects should be interacted for each other.