Research On The Approaches Of Shareholders Mutual Governance In Government Invested Project From The Contract Network

Government invested project plays an important role in developing our nationaleconomy, improving the livelihood of people and promoting harmonious society.However, in government invested project，there is still much loss of control which canbe attributed to the interest conflict between shareholders. So that, harmonizing theinterest conflict is helpful to avoid or reduce the happening of loss of control andimprove the performance of the project.The method of management on the technical level may not deal with the interestconflict well. Therefore，this paper uses an approaches based on shareholders mutualgovernance to solve the problem of interest conflict. Mutual governance means lettingeach shareholder participate in project governance fully and arrange the responsibilities,rights and benefits actively, so that it can improve the governance efficiency of project.Circulating these issues，in this paper，theoretical analysis、game analysis andmathematical modeling has been used and the main contents to be study are listedbelow.I. Analyze the characteristics of contract in government invested project，pointinggovernment invested project as a contract network which formed by the contractbetween shareholders. It includes:1) The definition of shareholders of governmentinvested project which are expressed as node in the contract network;2) The definitionof relationship in the contract network and pointing out that the contract relationshipbetween shareholders is a general definition，including explicit, implicit and relationalcontract.II. Identify and classify the shareholders in the contract network. First, the method ofidentification is given. Specifically, the shareholders can be found out from twodimensions of which the one is project stages and the other one is the working contentsof each stages. Second, classify the shareholders identified according to the initiative ofparticipating in the project，the influence to the project and the Interest tendency ofthemselves.III. Analyzes stakeholders interest demands and conflict, it considers that the conflictof interest is due to the unequal stakeholder interest demands and the irrationaldistribution of benefits, using game theory makes analysis about stakeholder demandsand conflicts of interest. It also notes that conflicting of stakeholders interests will leadto a non-cooperative state generator and have bad influence to the project. IV. Discusses the group decision as an approach of shareholders mutual governance.In group decision, at first, the decision-makers must be chosen for avoiding lessefficient and accuracy. And then, the shareholders chosen as decision-makers sort thelist of alternatives according to the interest demands of themselves. At last, the lists ofalternatives from each decision-makers should be aggregated into a one that stands forthe interest demands of the decision group, so that the final decision could be made.Group decision of shareholders, as one of approaches of shareholders mutualgovernance, is aimed at to give Shareholders some rights in decision-making and tomake them participate in the decision-making of project to their show own interestdemands. Group decision of shareholders will do good in increasing the efficientand accuracy of decision-making in Government Invested Project，Balance of interestsdemands between stakeholders and solving the problem of interest conflict.